Frontera Copper seeks waiver, extension of interest payment on notes

By Angela McDaniels

Tacoma, Wash., June 15 - Frontera Copper Corp. is seeking a waiver of the default it is expecting in connection with its failure to make the June 15 interest payment on its series 1 notes due June 15, 2010 and series 2 notes due March 15, 2011, according to a company news release.

The company is also seeking to amend the trust indenture so that the interest payment can be made in three equal installments on June 15, July 15 and Aug. 15.

The waiver and amendment are being solicited via an extraordinary resolution that is dated June 10.

Frontera is negotiating an agreement to secure the equipment at its Piedras Verdes Mine and to obtain a commitment to restart mining under its contract with PEAL SA de CV. The company said PEAL plans to sell the equipment that Frontera was using at the mine before it halted production there.

The agreement will consume most of the company's liquidity, but Frontera said it believes that only through the restart of operations can its viability be maintained.

Frontera is a copper mining company that is based in Phoenix and listed on the Toronto Stock Exchange.

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