Coiled Thera Regulatory News (COIL)

4 Oct 2006 07:00

Cambrian Mining PLC04 October 2006 4 October 2006 CAMBRIAN MINING PLC Cambrian Mining ("Cambrian") would like to refer shareholders to the followingpress release announced today by Xtract Energy plc. Cambrian currently holds 54%of the issued capital of Xtract Energy plc. Xtract Energy plc ("Xtract" or "the Company") Loan facility and Completion of Purchase of Investments The Company announces that it has entered into a loan facility ("the Loan") withCambrian Mining Plc ("Cambrian") under the terms of which Cambrian has agreed toprovide a loan facility to Xtract for an amount of £2,000,000. The Loan shallbear interest at a rate of LIBOR plus 2% and is repayable on demand after 1March 2007, or prior to that date in the event Xtract undertakes a placing. As Cambrian is a substantial shareholder of Xtract, the provision of the Loan byCambrian to Xtract is a related party transaction under the AIM Rules. Thedirectors of Xtract, having consulted with the Company's nominated adviser,Smith & Williamson Corporate Finance Limited, consider that the terms of thetransaction are fair and reasonable insofar as its shareholders are concerned. The Company also announces that it has now completed the purchase of 19.5% ofWasabi Energy Limited, 18.6% of Aviva Corporation Limited and 28.2% of CambrianOil & Gas Plc as described in detail in the announcement made by the Company on1 September 2006. The completion of these purchases is an important step for Xtract resulting in asignificant shareholding position in Cambrian Oil & Gas Plc and creates anexciting portfolio of energy assets. Xtract is pleased to be the energy investment arm for the Cambrian Mining groupand believes the portfolio has the potential for significant growth. 4 October 2006 Enquiries: XtractSue Wickerson 020 8466 0406Director Smith & WilliamsonAzhic Basirov 020 7131 4000David Jones 020 7131 4000 Information on Cambrian Oil & Gas plc ("COIL") COIL was formed in March 2004 and acquired its first oil and gas exploration andproduction assets in March 2005 when it was admitted to AIM; these are locatedin the Kyrgyz Republic. In July 2006, COIL agreed to invest up to £1.7 millionin Methanol Australia Ltd., a gas-to-liquids business based in Australia whichis quoted on the ASX market. Information on Wasabi Energy Limited ("Wasabi") Wasabi is quoted on the ASX market. Wasabi has an investment in Exergy Inc., aUS-based business which owns a technology for the generation of electricity fromgeothermal and waste heat. Wasabi also has interests in a Canadian coal miningproject at Lillyburt, two uranium exploration licences in Australia and anAustralian company specialising in developing bio diesel production plants andin marketing the fuel. Information on Aviva Corporation Limited ("Aviva") Aviva is quoted on the ASX market. Aviva's main business is an iron, coal andcogeneration project in Western Australia. This information is provided by RNS The company news service from the London Stock Exchange