Asarco asks for bidding procedure approval for lode mine claim sale

By Caroline Salls

Pittsburgh, Dec. 21 - Asarco LLC requested court approval of the bidding procedures for the proposed sale of some of its patented and unpatented lode mining claims located in Santa Cruz, Ariz., to stalking horse bidder Arizona Minerals, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Under the purchase agreement, Arizona Minerals will pay $3.75 million in cash and execute a $4.5 million promissory note on the closing date.

Arizona Minerals has paid a $250,000 deposit. Competing bidders must also pay the same deposit.

If Arizona Minerals is not the high bidder, Asarco will pay it a $50,000 break-up fee and up to $50,000 for expense reimbursement.

Competing bids must be for at least $200,000 more than Arizona Minerals' proposed purchase price.

Subsequent bids must be for at least $100,000 more than the previous bid.

An auction will be held, if necessary, on Jan. 31.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy Aug. 9. Its Chapter 11 case number is 05-21207.

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