Last checked at 5 Mar 2010 07:00
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5 March 2010
Sale of Zincore shares
Hochschild Mining plc ("Hochschild") announces that it has sold its 36.9% holding in Zincore Metals Inc ("Zincore") for a total cash consideration of C$10.3 million. As a result of the transaction, Hochschild has no further interest in Zincore.
The Company acquired ownership of 38,100,000 common shares of Zincore, a listed mining exploration company with projects in southern Peru,as a result of its purchase of Southwestern Resources Corp in May 2009. Hochschild has disposed of its stake as it does not constitute a core asset for the Company.
Executive Chairman, Eduardo Hochschild purchased Hochschild's 36.9% stake in Zincore at a price of C$0.27 per share representing a 11.6% premium over the 20 day average closing price. The shares were purchased through an investment vehicle, Inversiones Pacasmayo SA, for investment purposes and Eduardo Hochschild may choose to acquire or dispose of Zincore shares in future. Mr Hochschild did not previously own Zincore shares.
The disposal was approved on behalf of the Hochschild board by a committee comprising solely independent Non-Executive Directors ("the Independent Committee"). The Independent Committee has been advised by Canaccord Adams Limited that the terms of the disposal are fair and reasonable as far as shareholders are concerned.
Enquiries:
Hochschild Mining plc
Isabel Lütgendorf +44 (0)20 7907 2934
Head of Investor Relations
Finsbury
Robin Walker +44 (0)20 7251 3801
Public Relations
About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.
Disclaimer
Canaccord Adams Limited, which is authorised and regulated by the Financial Services Authority ("FSA") , is acting exclusively for the Independent Committee and no-one else in relation to the disposal and will not be responsible to any person (whether or not a recipient of this announcement) other than the Independent Committee under the Financial Services and Markets Act 2000 , the rules of the FSA or otherwise for providing the protections afforded to its clients or for any matter concerning the disposal or for providing advice in relation to the disposal or in relation to the contents of this announcement or any other transaction, arrangement or matter referred to herein.