VANCOUVER, Jan. 29, 2013 /PRNewswire/ - Copper North Mining Corp. ("Copper North" or "the Company") (TSX.V: COL) is pleased to announce it has signed a Letter of Intent ("LOI") with the Yukon Energy Corporation ("YEC") setting out essential elements of a Power Purchase Agreement ("PPA") and ancillary agreements to be negotiated, executed and delivered between the parties for the supply of electricity by YEC to the Company at the Carmacks Copper Project ("the Project") Yukon, Canada.
The PPA will contain the terms and conditions upon which YEC will supply Copper North with the electricity requirements for the Project from YEC's grid-based electricity generation through YEC's transmission grid (the "Grid") and transmission connection from the Project to the Grid.
Subject to the approval of the Yukon Utilities Board (the "YUB"), the LOI provides that key provisions of the PPA will include:
- Specification of project power requirements, including maximum megavolt-ampere loads as well as projected annual energy demand during the life of the project;
- Funding arrangements for grid connection, system upgrades, operating costs related to grid connection and removal and decommissioning costs; and
- Rate charges applicable to all major industrial customers.
The Company anticipates that YEC will serve the Project from the existing Carmacks-Stewart 138 kV transmission line, built along the Klondike Highway. A new substation (tap-off) in the vicinity of McGregor Creek would feed an 11 km 34.5 kV transmission spur-line to the Project's main substation, terminating on a dead-end structure ahead of the site substation.Copper North will provide the capital (currently estimated at $9.7 million) for the design, permitting and construction of the tap-off from the existing Grid, and 11 km 34.5 kV transmission line. President and Chief Executive Officer, Dr. Sally Eyre stated "we have reached yet another milestone at the Carmacks Copper Project. Following completion of the Feasibility Study at the end of 2012, the LOI now enables us to advance negotiations with YEC regarding a PPA for the supply of electricity". About Copper North Copper North is a Canadian mineral exploration and development company. Copper North's assets include the Carmacks Copper Project located in the Yukon, and the high-grade, stratiform-copper Redstone Property, located in the Northwest Territories. Copper North trades on the TSX Venture Exchange under the symbol COL. Please visit www.coppernorthmining.com. On behalf of the Board of Directors: