Anglesey Mining PLC - Re Litigation Settlement

RNS No 1237x
ANGLESEY MINING PLC
28th May 1998


ANGLESEY LITIGATION SETTLED

Anglesey Mining plc is pleased to announce that the outstanding litigation
concerning its Parys Mountain mine property at Anglesey in Wales has been 
settled.

The company had been sued in the Canadian courts in early 1996 by Intermine 
Limited, a holder of a royalty interest in the property, alleging breach of
contract and claiming title to the Parys Mountain property or damages of Can.
$96 million. Under an agreement entered into in 1984 Intermine was entitled,
together with Parys Mountain Mines Limited, to a royalty of 15% of net profits
on production from the Parys Mountain mine and Anglesey had the right to
purchase one half of that royalty. Anglesey acquired Parys Mountain Mines
Limited in September 1997.

Under a settlement agreement, Anglesey will acquire from Intermine and Parys
Mountain Mines Limited, their rights and claims to the old 15% royalty and will
issue to Intermine 1.5 million new ordinary shares.

Under a further new agreement Intermine will be entitled to a royalty of 4% 
of net profits from the operation of the Parys Mountain mine. Anglesey will
have the option of buying out this royalty, initially for a price of Can. $1
million, increasing to Can.$2 million after five years or, if purchased after
Anglesey has committed to put the mine into production, for the net present
value of the royalty. Unless the royalty is bought out, Anglesey will make
annual payments to Intermine of Can.$50,000 per annum (approximately #22,000)
until the mine is in production.

Commenting on these developments, chairman John Kearney said "This is a fair
settlement for both parties. Anglesey has reduced the net profits royalty 
to 4% and has the option to buy it back at any time. Intermine becomes a
shareholder in Anglesey and will participate in the future fortunes of the 
company both as a shareholder and by means of a reduced royalty interest in
the Parys mountain mine."

"Settlement of the litigation on very satisfactory terms has removed a cloud
that was lying over Anglesey. We are pleased to be able to put the litigation
behind us. Now we can once again focus our efforts on the development of the
property."

The Parys Mountain property is the only known undeveloped polymetallic mineral
deposit in the United Kingdom and contains an important geological resource of 
6.5 million tonnes with a combined average grade of over 10% zinc, copper
and lead together with appreciable quantities of gold and silver. Anglesey is
currently carrying out a drilling programme on the property with the objective
of increasing the overall geological resource base at Parys Mountain.



END

MSCALLFDEEITFAT

Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024