May 31, 2010 / 1:51 PM / 7 years ago

UPDATE 1-Copper Mountain, Mitsubishi finalize debt financing

* Signs debt financing agreements worth $322 mln

* Mine expected to begin full production in June 2011

TORONTO, May 31 (Reuters) - Copper Mountain Mining Corp CUM.TO said on Monday it has signed debt financing agreements worth $322 million for the development of its flagship Copper Mountain project in southern British Columbia.

Financing for the project was arranged by Japan’s Mitsubishi Materials Corp (5711.T), which owns a 25 percent stake in the Copper Mountain project.

Mitsubishi, one of the world’s largest diversified materials companies, also owns a stake in BHP Billiton’s (BHP.AX) (BLT.L) Escondida, the world’s largest copper mine, which is located in northern Chile.

Mitsubishi bought its stake in the Copper Mountain project in October 2008. At the time, it also agreed to arrange about $250 million in debt financing for the construction of the mine.

The mine, which is expected to begin full production in June 2011, will produce about 105 million pounds of copper annually. It will also produce gold and silver as byproducts.

The financing consists of two tranches; with $162 million being provided by a consortium of senior lenders comprising Bank of Tokyo-Mitsubishi UFJ Ltd and Mizuho Corporate Bank [MZFGAI.UL]; along with a term loan of $160 million provided by Japan Bank for International Cooperation, the international arm of Japan Finance Corp [JFC.UL]. (Reporting by Euan Rocha; editing by Peter Galloway)

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