Royal Silver Mines Drops Copper Project

Royal Silver Mines will abandon a copper project in Chile following the withdrawal of a joint-venture partner.

Teck Exploration, Royal Silver Mines’s Canadian partner, announced this week that it would withdraw from the Mocha project in northern Chile, citing depressed copper prices and a reduced exploration budget.

“Because of the Asian crisis, there’s been so much meltdown. So many promising projects have been abandoned,” said George Jay, who is in charge of investor relations for Royal Silver, a Spokane-based junior mining company.

Teck completed exploratory drilling on the property this spring. It had the option of purchasing 1.2 million shares of Royal Silver, which would have funded further work at the Mocha project.

“We are obviously disappointed in Teck’s decision to withdraw,” said Royal Silver President Howard Crosby. “However, given the 40 percent decline in world copper prices over the past year, and a huge reduction in exploration budgets industrywide, it is not terribly surprising.”

Royal Silver purchased the Mocha project from two Chilean companies last year. In light of Teck’s announcement, the company will allow the property to revert back to underlying landowners.