Nord Resources Corporation which is producing copper at its Johnson Camp Mine in Arizona announced that it entered into a new copper cathode sales agreement with Red Kite Master Fund Limited for 100% of the production from the Johnson Camp Mine, given the expiry of the long term copper cathode sales agreement between the parties that was in place from February 1st 2008 through December 31st 2012.
The agreement runs through March 31, 2013 with renewable extensions by mutual agreement of both parties. Pursuant to the agreement, Red Kite accepts delivery of the cathodes at the Johnson Camp Mine, and pricing is based on the COMEX price for high-grade copper on the date of sale.
In July 2010, Nord suspended mining new ore at the Johnson Camp Mine as it sought financing to permit the company to restructure its debt and provide additional capital for constructing a new leaching pad. It continues to leach copper from the material previously placed on the existing three pads on its property, processing it through the Johnson Camp Mine's SX-EW plant. As expected, the level of copper production and sales continue to decline at a steady rate.
