By: Dylan Sikes - AllPennyStocks.com News

Wednesday, May 8, 2013

The faithful investors in micro cap mining plays have been dealing with some disappointing performance on the whole in the past two years. Blue chips in the United States are making record highs and the TSX Composite is well above crash levels from 2008, yet the junior-resource-heavy TSX Venture hit its lowest level in April since March 2009. Cash is tough to come by for juniors nowadays and could certainly lead to some substantial consolidation in the small exchange if additional venture capital doesn’t start finding its way into the coffers of the hundreds of developmental plays on the Venture exchange. For many it could be “do or die” time without capital infusions or some partnerships with larger firms to advance properties and generate capital. For two juniors, Wednesday was accompanied with some encouraging news of new agreements with larger peers.

Columbus Copper Corporation (TSX-Venture:CCU) (OTCBB:EMNGF), a Vancouver-based explorer formerly known as Empire Mining Corporation, said that it penned a “project generation agreement” with First Quantum Minerals Ltd. (TSX:FM). In the deal, First Quantum will give Columbus Copper $250,000 over a twelve-month period to scavenge the European Balkan Peninsula and Turkey for copper-dominant projects for acquisition.

If reconnaissance identifies a worthy mineral project, Columbus Copper will own the project and First Quantum will retain the right to earn up to a 70-percent interest via an option and joint venture agreement with Columbus Copper. The option/JV agreement will require First Quantum to fund up to $5 million in staged exploration expenditures, according to a statement today by Columbus Copper.

Columbus Copper has a footprint in the area with projects in Turkey, Serbia and Albania.

“This generative agreement presents an excellent opportunity for Columbus Copper to strengthen its exploration and development portfolio in the Balkans and Turkey at minimal expense to the company," said David Cliff, president and chief executive of Columbus Copper.

Separately, Rockcliff Resources Inc. (TSX-Venture:RCR) reported that Hudson Bay Exploration and Development Company Limited, a subsidiary of HudBay Minerals Inc. (TSX:HBM) (NYSE:HBM), has exercised its back-in option for Rockcliff’s Freebeth property in the Flin Flon/Snow Lake Greenstone Belt.

Freebeth is located about 10 kilometers east of HudBay’s Reed Copper project that is expected to begin initial production by the end of 2013. Currently, Reed, a near-surface deposit, has a mine life of five years at a projected production rate of 1,300 tonnes per day.

With the agreement, HudBay will make a one-time cash payment of $170,000 to Rockcliff and agrees to a minimum of $1.8 million in work expenditures at Freebeth in exchange for a 55-percent interest. The stake can be increased to 65 percent by Hudson Bay bringing the property to commencement of commercial production and financing Rockcliff’s 35-percent portion of the development cost.

Expressing his pleasure with HudBay exercising the option, Rockcliff president and CEO Ken Lapierre explained that, “It not only provides additional cash in our treasury, it also allows significant exploration funds to be spent at Freebeth with no share dilution to Rockcliff.”

Both Columbus Copper and Rockcliff have seen shares appreciate with today’s partnering news, albeit on limited volume. Shares of CCU have only traded 7,500 in volume, but have risen 37.5 percent to 5.5 cents, leaving the company with a $5.5 million market capitalization. Shares of RCR are ahead by 33.3 percent at 2 cents with 240,000 shares changing hands. With 114.34 million shares outstanding, that translates to a market capitalization of $2.29 million.

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