Friday , November 09, 2007 13:54ET
SPOKANE, WASH., Nov 9, 2007 (Canada NewsWire via COMTEX) -- Mines Management, Inc. (AMEX:MGN) (TSX:MGT) is pleased to announce that it has acquired a net profits royalty ("NPR") held by former investors in the Montanore Silver-Copper Project in northwestern Montana. The 5% NPR was purchased from Montana Reserves Company ("MRC") of Spokane, Washington, for a payment of $500,000 in cash.
Mines Management's President and CEO, Mr. Glenn Dobbs, stated, "We are pleased to conclude purchase of this royalty as yet another step in adding value to the Company and our shareholders. Purchase of this NPR reduces potential financial obligations, positively affecting the future value of the Montanore Project."
The NPR previously entitled MRC to receive 5% of the profits generated from mining operations after all exploration, development and certain mining costs were recovered. In exchange, MRC has agreed to terminate their legal action, originally filed on August 11, 2005, against Mines Management, Noranda Minerals, and Normin Corporation, as previously reported in the Company's filings with the Securities and Exchange Commission.
Mines Management is a U.S. based mineral exploration company focused on the acquisition, exploration, and advancement of silver dominant mineral projects. The company's primary focus is currently on the advancement of the Montanore Silver-Copper Project located in the United States. The Montanore is currently undergoing an advanced stage evaluation program to support a bankable feasibility study and permitting process.
Statements Regarding Forward-Looking Information: Some statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially, including comments regarding the use of proceeds from the offering. Actual results may differ materially from those presented. Factors that could cause results to differ materially include fluctuations in silver and copper prices. Mines Management, Inc. assumes no obligation to update this information. There can be no assurance that future developments affecting Mines Management, Inc. will be those anticipated by management. Please refer to the discussion of risk factors in the Company's Form 10-K for the year ended December 31, 2006, as amended.
SOURCE: Mines Management, Inc.
Mines Management, Inc. Douglas Dobbs, Vice President of Corporate Development
509-838-6050 info@minesmanagement.com