AAA.L Regulatory News (AAA)

7 Feb 2006 07:01

Adastra Minerals Inc07 February 2006 NEWS RELEASE Adastra Mandates IDC And Investec In Kolwezi Financing Trading: TSX and AIM: AAA London, UK (February 7, 2006) Adastra Minerals Inc. ("Adastra" or the "Company")announces that it has awarded the Industrial Development Corporation of SouthAfrica Limited ("IDC") and Investec Bank Limited ("Investec") mandates toco-arrange a South African export credit tranche of the project financing forthe Kolwezi Tailings Project ("Kolwezi" or the "Project") in the DemocraticRepublic of Congo. The IDC and Investec mandate agreements have been executed by Adastra's whollyowned subsidiary Congo Mineral Developments Ltd ("CMD"). CMD is the majorityshareholder of Kingamyambo Musonoi Tailings SARL ("KMT"), the company that owns100% of Kolwezi and that will be the borrower and operator of the Project. CMDis responsible for carrying out the Definitive Feasibility Study and theEnvironmental and Social Impact Assessment, and for organising the financing forthe Project. "This is another major contribution to the project financing of Kolwezi", saidTim Read, President and Chief Executive of Adastra. "As this shows, we are notallowing the recent opportunistic bid made for Adastra to deflect us. The SouthAfrica export credit tranche will be for US $80-120 million with a ten yearmaturity. It will fund a further 30% of the Project's total capitalrequirements on top of the 20% already announced. Adastra's Kolwezi projectremains firmly on course." About Adastra Adastra is an international mining company listed on the Toronto Stock Exchangeand on AIM, in London, under the symbol "AAA". It is currently developingmineral assets in Central Africa, including the Kolwezi Tailings Project, andthe possible rehabilitation of the Kipushi zinc mine in the DRC. Adastra'sgrowth strategy emphasizes the creation of shareholder value through thedevelopment of world-class resources in stable of stabilizing politicalenvironments. About the IDC The IDC (www.idc.co.za) is a self-financing, South African state-owned nationaldevelopment finance institution that provides financing to entrepreneurs engagedin competitive industries. It follows normal company policies and procedures inits operations, pays income tax at corporate rates and dividends to itsshareholder, and reports on a consolidated basis, with its annual report freelyavailable to the public. Its primary objectives are to contribute to balanced sustainable economic growthin Africa and to the economic empowerment of the South African population,thereby promoting the economic prosperity of all citizens of the Africancontinent. About Investec Investec is an international, specialist banking group that provides a diverserange of financial products and services to a select client base. Investec hasextensive experience in financing mining projects across Africa. About the Kolwezi Project Adastra's Kolwezi Project consists of two dams containing 112.8 million tonnesof oxide tailings, grading 1.49% copper and 0.32% cobalt, as determined by Dr.Isobel Clark of Geostokos Limited, a "qualified person" as defined by theCanadian Securities Administrators' N1 43-101. This resource has the potentialto host one of the world's largest and lowest cost cobalt producers. Adefinitive feasibility study is expected to be completed in the first quarter of2006. If this study is favourable, construction is expected to commence beforeyear-end, with first production in mid 2008 and a mine life in excess of 50years. Such a project would generate significant taxation, royalty and dividendrevenues to the Government, as well as providing local employment andcontributing to the regeneration of the DRC's copper belt infrastructure. ENDS Contact us: LondonTim Read Cathy Malins / Annabel LeatherChief Executive Officer Parkgreen CommunicationsT: +44 (0)20 7355 3552 T: +44 (0)20 7493 3713F: +44 (0)20 7355 3554 F: +44 (0)20 7491 3936E: london@adastramin.com E: cathy.malins@parkgreenmedia.com North AmericaMartti KangasThe Equicom GroupT: +1 416 815 0700 x. 243 +1 800 385 5451 (toll free)F: +1 416 815 0080E: mkangas@equicomgroup.com This News Release contains forward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 concerning theCompany's plans for its Kolwezi Project in the Democratic Republic of Congo ("DRC") and the resource size and economic potential of that project. Theseforward-looking statements are subject to a variety of risks and uncertaintieswhich could cause actual events or results to differ materially from thosereflected in the forward-looking statements, including, without limitation,risks and uncertainties relating to political risks involving the Company'soperations in the DRC and the policies of other nations and organizationstowards companies doing business in such jurisdictions, the inherent uncertaintyof production and cost estimates and the potential for unexpected costs andexpenses, commodity price fluctuations, the inability or failure to obtainadequate financing on a timely basis and other risks and uncertainties,including those described in the Company's Annual Report on Form 20-F for theyear ended October 31, 2003 and Reports on Form 6-K filed with the Securitiesand Exchange Commission. This information is provided by RNS The company news service from the London Stock Exchange