28th Feb 2005 07:00
Minco PLC28 February 2005 Minco plc Minco plc closes Mexican gold/silver asset Acquisition and acquires additional 1800 hectare concession LONDON: 28 February 2005: AIM listed precious metals explorer and developerMinco plc ('Minco' or 'the Company'), (AIM:MIO), today announces that it hascompleted the acquisition of the 50% equity interest in Minera Sisa SA de CV(Sisa), which owns and has previously operated the high grade gold and silvermining properties in the Sierra Madre Mountains, 170 kilometres from Durango inMexico. Completion gives Minco a 50% equity interest for US$2.4 million and acommitment to invest a further US$2.0 million into exploration and developmentof the property. The deal also gives Minco immediate control of the board ofSisa. The Acquisition Agreement Following Minco's investment of US$2.0 million in exploration and development ofthe properties, further funding will be provided by the partners on a pro ratabasis to their shareholding in Sisa. In the event one party elects not to, orfails to, contribute its pro rata share of funding, the interest of the otherparty will increase by 1% for every US$160,000 contributed. Upon achieving 60%equity ownership in Sisa, Minco will issue 1,000,000 new ordinary shares inMinco and make a cash payment of US$100,000 to the other shareholder.Subsequently, for each US$240,000 invested in the project, 1% of additionalequity in Sisa will be issued to the investing party. If Minco's equityinterest increases to 70% a further payment of US$150,000 cash and 1,000,000Minco new ordinary shares will be made. Likewise at 80% equity interest- US$200,000 cash plus 1,000,000 Minco new ordinary shares; 90% equityinterest - $250,000 cash plus 1,000,000 Minco new ordinary shares; and 100%equity interest - US$250,000 cash plus 1,000,000 Minco new ordinary shares. Atpresent the remaining 50% equity interest in Sisa will continue to be held bythe Salas family who have been involved with the property since 1967. Further increases in Concession area. As a result of the ongoing geological work programme, the Company also announcesthat it has increased its concession area from 450 hectares to 2,250 hectares byregistering a further 1,800 Hectares of contiguous land which is strategicallyplaced along several of the currently identified strike zones. Ongoing Geological Work programme. Sisa is a high grade gold silver epithermal deposit with substantial potentialresources; previous independent evaluations suggest the possibility of 10million tonnes of material with a gold equivalent grade of 12 grammes per tonwith grades of up to 1,000 grammes per ton silver and 30 grammes per ton goldoccurring in a number of vein intersections. As yet, this deposit has not beenevaluated to either JORC or NI 43 101 standards. The ongoing geological programme has identified additional mineralised outcropstructures which have been mapped and sampled. In addition, approximately 18kmof surface geochemical sampling is nearing completion and an extensive programmeof surface and underground sampling and mapping is underway. The systematicprogramme of surface trenching, underground mapping and channel sampling, inaddition to surface geochemical evaluation, will allow drilling to begin in May2005 and Minco is already negotiating with drill contractors for earlymobilisation. The Company expects to complete a significant drill programme onthe properties in order to explore and evaluate the possibility of a large scaleopen pit operation. Matthew Dorman, CEO, speaking today stated: "Completion of the Sisa acquisition is a major step forward in our objective tobecome a significant precious metals producer. The further acquisition of 1,800hectares of concessions contiguous to the Minera Sisa properties, whichexploration has indicated as having possible further strike extension andoccurrences of surface alteration and mineralisation, consolidates ourprospective gold and silver development in the Sierra Madre mountain range. Theongoing exploration programme at Minera Sisa continues to uncover additionalmineralisation and we are identifying key targets to be drilled in May thisyear." Minco continues to develop the La Laguna silver tailings property with workunderway to complete the final bankable feasibility study. For further informationMatthew Dorman; CEO, MincoTel: +44 (0) 207 947 3237 Email: [email protected] Roger Turner; Chairman, Minco,Tel +44 (0) 1273 495 500 E-mail: [email protected] Laurence Read; ConduitPR+44 (0) 207 936 9095 /+44 (0) 7979 955 923 E-mail: [email protected] Ewan Leggat; Seymour Pierce Limited+44 (0) 20 7107 8000 E-mail: [email protected] MINCO is a precious metals development and exploration company traded on the AIMmarket in London. Ticker symbol (MIO), www.minco.ie This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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