FQM.L Regulatory News (FQM)

16 Aug 2006 17:33

First Quantum Minerals Ld16 August 2006 NEWS RELEASE06-20August 16, 2006www.first-quantum.com ACQUISITION OF ADASTRA MINERALS BY FIRST QUANTUM MINERALS First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM",LSE Symbol "FQM") today announced , further to its announcement of August 14,2006, that after final determination of deficiencies in respect of deposits,the number of valid deposits received as at August 11, 2006 pursuant to thearrangement involving First Quantum and Adastra Minerals Inc. ("Adastra"), andthe consideration payable to Adastra shareholders who deposited their shares asat such date, has been revised. Letters of transmittal have been received inrespect of the valid deposit on August 11, 2006, of approximately 21 millionshares, which will now result in the issuance of approximately 1.2 millioncommon shares of First Quantum. Payment of a total of approximately Cdn$ 9.8million in cash is expected to be made on or about August 16, 2006. Cashpayments will be funded directly from the Company's ongoing cash resources.Adastra shareholders who elected to receive First Quantum common shares will nowreceive Cdn$0.4339 in cash and 0.0581 of a First Quantum common share for eachAdastra common share deposited subject to adjustment in respect of fractionalshares. Adastra shareholders who elected to receive cash will receive Cdn$2.92for each Adastra common share deposited. The amount of Adastra sharesremaining to be deposited under the arrangement is approximately 500,000. Adastra's common shares have been delisted both from the Alternative InvestmentMarket of the London Stock Exchange and the TSX. Adastra has ceased to be theequivalent of a reporting issuer in the United States and is in the process ofapplying to cease to be a reporting issuer in the relevant jurisdictions ofCanada. Forward Looking Statements Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995 and forward-looking information under applicableCanadian securities legislation. Such forward-looking statements orinformation, including but not limited to those with respect to the prices ofgold, copper, cobalt and sulphuric acid, estimated future production, estimatedcosts of future production, the Company's hedging policy and permitting timelines, involve known and unknown risks, uncertainties, and other factors whichmay cause the actual results, performance or achievements of the Company to bematerially different from any future results, performance or achievementsexpressed or implied by such forward-looking statements or information. Suchfactors include, among others, the actual prices of copper, gold, cobalt andsulphuric acid, the factual results of current exploration, development andmining activities, changes in project parameters as plans continue to beevaluated, as well as those factors disclosed in the Company's documents filedfrom time to time with the Alberta, British Columbia, and Ontario SecuritiesCommissions, the Autorite des marches financiers in Quebec, the United StatesSecurities and Exchange Commission and the Alternative Investment Marketoperated by the London Stock Exchange. On Behalf of the Board of Directors 12g3-2b-82-4461of First Quantum Minerals Ltd. Listed in Standard and Poor'sSedar Profile #00006237G. Clive NewallPresident The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. For further information visit our web site at www.first-quantum.com North American contact: Geoff Chater or Bill Iversen 8th Floor, 543 Granville Street, Vancouver, British Columbia, Canada V6C 1X8 Tel: (604) 688-6577 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: info@fqml.com United Kingdom contact: Clive Newall, President1st Floor, Mill House Mill Bay Lane Horsham West Sussex RH12 1TQ United Kingdom Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: clive.newall@fqml.com. or Carina Corbett, 4C-Burvale, Tel: + 44 20 7907 4761 ENDS This information is provided by RNS The company news service from the London Stock Exchange