BHR.L Regulatory News (BHR)

18 Feb 2008 07:00

Carnegie Minerals plc18 February 2008 18 February 2008 Carnegie Minerals Plc ("Carnegie" or the "Company") Gambia Update Following recent speculation, Carnegie Minerals Plc the AIM listed UK resourcecompany (AIM - CME), announces that Gambian police have detained the Company'srecently appointed British mining engineer Charlie Northfield, over allegationsthat the Company has been commercially mining Titanium, Iron ore and Uraniumfrom its mineral sands Licence in The Gambia. The Company strongly refutesthese charges and is working closely with the UK Foreign and Commonwealth Officeto secure his release. The Company wants to make clear that a component of mineral sands (Ilmenite, forwhich we are licensed to mine) is Titanium and Iron oxide. We would also like toclarify that trace amounts of uranium occurring in the Gambian mineral sands areusual for such deposits and cannot be economically extracted and therefore haveno commercial value. The Company has previously notified the Gambian Governmentof this trace occurrence in its previous information submission and thatCarnegie was willing to pay for independent international industry experts toreview the Company's mining data to assist with their understanding of it. The Company has provided to The Gambian Government continuous full disclosurewith each shipment since the start of the project. This included all weights,Independent SGS laboratory results & pricing calculations. SGS is one theworld's leading testing and inspection businesses. Under the agreement signed with The Gambian Government prepared under theguidance of the Commonwealth Development Corporation Ltd of the UK, in the eventany issue arose in relation to the project, there is a clear pre-agreed processwhich involves independent arbitration in London. The Company has previously announced on 13 February 2008, that it had receivednotification from The Government of the Republic of The Gambia of the unilateralcancellation of it's licence to mine heavy mineral sands, and that the Companyhad already fully provided for this outcome. Alan Hopkins, MD of Carnegie Minerals said: "We strongly refute all charges that the Gambian Government has levied againstus. We have been operating in The Gambia since 1999 and have always stronglyadhered to the legal processes as set out by the Gambian Government and ourmining licence. "We are now doing everything in our power to ensure the safe return of ouremployee." Alan Hopkins, ManagingDirector, Carnegie Minerals Plc 020 7831 3113Romil Patel / Olly Cairns, Blue Oar 020 7448 4400 /Securities Plc + 61 8 6430 1631 Billy Clegg /Edward Westropp, Financial 020 7831 3113 / 07977 578 153 / Dynamics 07957 230 946 This information is provided by RNS The company news service from the London Stock Exchange