[DELETED LOGO] NORD PACIFIC LIMITED
201 Third Street NW, Suite 1750
Albuquerque, NM 87102
505/241-5820
Fax: 505/766-9922
News Release
Nord Pacific Announces Agreement to Acquire the Remaining
50% of Tritton Copper Project Not Currently Owned
December 17, 1999 OTC Bulletin Board: NORPF
Toronto Stock Exchange: NPF
Albuquerque, New Mexico - Nord Pacific Limited announced
today that it has agreed with Straits Resources Limited to
acquire the 50% interest that Nord does not currently own in the
Tritton copper project, New South Wales, Australia. Completion
of the transaction is subject to final documentation and board of
directors approval.
The Tritton deposit is part of a 50:50 exploration joint
venture between the Company and Straits on property that
surrounds their jointly owned Girilambone copper mine. Tritton,
which was discovered in 1996, contains a recoverable, diluted
resource of 9.225 million tonnes grading 2.63% copper, containing
535 million pounds of copper. Within this resource are reserves
of 4.610 million tonnes grading 3.14% copper which would be mined
by underground methods.
In late 1998 the joint venture completed a feasibility study
on the project which demonstrated its economic viability and
estimated the capital cost of development at $27.5 million. The
Company intends to proceed with financing and development of the
project in the first half of 2000 with initial production
possible during the second half of 2001. Government approval to
develop the project was received in September 1999.
The consideration to be paid to Straits for their interest
in the project is A$ 9.0 million (US$ 5.85 million) consisting
of:
a) A$3.0 (US$ 1.95) million payable on closing
b) A$3.0 (US$ 1.95) million payable in four semi-annual
payments of A$750,000 commencing six months after closing,
and
c) A$3.0 (US$ 1.95) million payable in six annual installments
of A$500,000 commencing twelve months after the
commencement of copper production.
Nord will grant to Straits an option to acquire Nord's 40%
interest in the SX-EW equipment used at Girilambone under certain
circumstances intended not to interfere with copper production at
Girilambone for consideration below market value.
Commenting on the purchase, CEO Dr. W. Pierce Carson stated,
"Owning one hundred percent of the Tritton project will allow
Nord Pacific to develop the project on an aggressive schedule.
The transaction is part of our strategy to focus on achievable
projects which will generate cash flow and earnings with an
emphasis on copper and precious metals." In November the Company
announced the disposition of its interest in the Ramu nickel
cobalt project as part of its change of strategy.
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The Company's 28.5% shareholder, Nord Resources Corporation,
owns the Johnson Camp copper mine in Arizona.
In addition to the Tritton project the Company owns an
interest in the nearby Girilambone copper mine which has been in
production since 1993 and 100% of the Simberi gold development
project in Papua New Guinea. The Company also has activities in
the United States, Mexico and Canada.
Safe Harbor Statement under the Private Securities
Litigation Act of 1995: The statements contained in this release
which are not historical fact are "forward looking statements"
that involve various important risks, uncertainties and other
factors which could cause the Company's actual results to differ
materially from those expressed in such forward looking
statements. These factors include, without limitation the risk
factors disclosed in the Company's securities filings.
For information contact:
Pierce Carson, President and Chief Executive Officer, or
Ray Jenner, Chief Financial Officer
(505) 241- 5820
Website: www.nordpacific.com
