Thompson Creek Metals said Monday that it is terminating its option agreement with U.S. Energy to acquire an interest in the Mount Emmons molybdenum project near Crested Butte.
Vancouver-based Thompson Creek Metals, the world’s fifth-largest molybdenum producer, paid U.S. Energy of Riverton, Wyo., a $500,000 option in 2008 enabling them to spend $50 million over 10 years to obtain 50 percent ownership or up to $400 million for a 75 percent share.
Kevin Loughrey, chairman of Thompson Creek, said that the company made a “strategic decision” to step back from the Mount Emmons project to focus effort and resources on its Berg exploration property in British Columbia.
At the time Thompson Creek signed the option agreement with U.S. Energy, local officials said Thompson’s involvement made the mining project’s future “more real.”
“While we are disappointed with Thompson Creek’s departure from the project, we remain committed to moving the project forward on our own behalf as well as reaching out to other potential partners, including those outside of our borders,” said Keith Larsen, chief executive of U.S. Energy, in a statement.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
