Mines Management Inc., a small Spokane-based mining company, has registered with the U.S. Securities and Exchange Commission to sell up to $65 million in securities to raise money primarily to use in pursuing its proposed Montanore project in Western Montana.


The registration calls for selling from time to time any combination of common shares, preferred shares, warrants, or convertible debt with a total value of $65 million.


Proceeds of the sales would go toward further exploration and development of the Montanore; acquisition, exploration, and development of other mining properties; and general corporate purposes, the filing says.


The Montanore is a silver and copper deposit located south of Libby, Mont., in the Cabinet Mountains Wilderness area.


The property earlier was explored by the former Noranda Minerals Corp., which secured permits to build a mine there in the early 1990s, but abandoned the project in 2002. Mines Management, through its Newhi Inc. subsidiary, had some rights to the project at that time, and ended up with full ownership of the claims once Noranda pulled out.


Now Montanore is working to re-permit the proposed mine, and is updating an operational plan for it, the company says in public documents.


Company officials couldnt be reached for comment.


While no figures are available on proven or probable reserves at this point, Mines Management says on its Web site that the plan developed by Noranda for the project back in 1993 estimated a development cost of $240 million, in 1993 dollars. That plan proposed processing 20,000 tons of ore a day.


Mines Management says on its Web site that it has looked at processing somewhat less ore than that, perhaps 12,500 tons a day, which it estimated would produce about 8 million troy ounces of silver and 60 million pounds of copper a year for 20 years.


Though the mineral deposit lies beneath a federally protected wilderness area, Mines Management says it can access the deposit from outside that area, through horizontal tunnels, also called adits. The operation would be accessed from Libby Creek road off of U.S. 2, south of Libby.


Mines Management listed assets of $9.7 million, including about $8.8 million in cash and cash equivalents, as of Dec. 31. It posted a net loss of $5.2 million, or 45 cents a share, for 2005.


Contact Paul Read at (509) 344-1262 or via e-mail at paulr@spokanejournal.com.