ECR Minerals Regulatory News (ECR)

28 Oct 2005 13:50

St. Barbara Mines Limited28 October 2005 St Barbara Mines Limited ASX SHAREHOLDERS REPORT Sale of Meekatharra Assets The Company has sold its Meekatharra assets to Mercator Gold plc ("Mercator") for A$21M The terms of the sale are:• Cash payment to the Company by Mercator of A$5M which includes a non-refundable deposit of A$250,000 which has been paid;• Replacement by Mercator of the Company's Environmental Performance Bonds of approximately A$3M; and• The issue of shares to the Company by Mercator to the value of A$13M at the lowest price that Mercator issues any shares, from execution to completion. The completion of the sale is subject to:• Mercator completing a new capital raising of a minimum of GBP8M (A$19M), in addition to the equity issue to St Barbara described above;• a 30 day due diligence period; and• Mercator obtaining all necessary AIM shareholder and regulatory approval. The Mercator capital raising is planned to fund exploration at Meekatharra.Completion is scheduled for no later than 28 February 2006. Mercator is currently the manager of the Annean Joint Venture at Meekatharra,having spent A$4M to earn a 45% interest, leaving St Barbara with 55%. TheAnnean Joint Venture represents 65% of the Company's total land holding atMeekatharra. The Meekatharra assets sold include the Company's 100% owned tenements, itsjoint venture interests, the Bluebird treatment plant and associatedinfrastructure. Following Mercator's new capital raising of a GBP8M (A$19M) minimum in additionto the equity issue to St Barbara, it is anticipated St Barbara will ownapproximately 23.4% of the fully diluted issued capital in Mercator. ShouldMercator be successful in raising its target of GBP12M (A$28M), St Barbara willown approximately 19.9% on a fully diluted basis. Eduard EshuysManaging Director & CEO 28 October 2005 Enquiries regarding this report may be directed to: Eduard Eshuys Managing Director & CEO St Barbara Mines Limited ACN 009 165 066 Level 2, 16 Ord Street West Perth WA 6005 Telephone +61 8 9476 5555 Facsimile +61 8 9476 5500 Email perth@stbarbara.com.au Website www.stbarbara.com.au This information is provided by RNS The company news service from the London Stock Exchange