Hochschild Regulatory News (HOC)

9 Jul 2007 07:01

Hochschild Mining PLC09 July 2007 9 July 2007 Hochschild Mining announces Strategic Alliance with EXMIN for Mexican exploration • Hochschild gains a right of first offer on certain existing EXMIN properties and on all future EXMIN properties in Mexico for a period of at least 18 months • Hochschild increases EXMIN stake from 4.46% to 17.4% by way of a private purchase • Moris mine, the advanced stage development project jointly owned by Hochschild (70%) and EXMIN (30%), is on track to commence production in Q3 2007 Eduardo Hochschild, Chairman of Hochschild Mining plc said: "This strategic alliance allows us to expand our exploration efforts in Mexicoin an innovative and cost effective manner that is mutually beneficial for bothparties. EXMIN has already proved an excellent partner for Hochschild in thedevelopment of our Moris mine and we look forward to working together to step upour involvement in Mexico to deliver further value for all our shareholders." Hochschild Mining plc ("Hochschild"), the London listed Latin American preciousmetals company and EXMIN Resources Inc. ("EXMIN"), a Toronto listed explorationcompany focused on northwestern Mexico, have entered into a Strategic Alliancewith respect to their exploration efforts in Mexico. Hochschild gains a right of first offer to develop, acquire or otherwise earn aninterest in certain of the properties located in Mexico over which EXMIN has anexclusive interest, as well as any new claims, options, acquisitions or anyother form of interest obtained by EXMIN in properties in Mexico for a period ofat least 18 months. This Strategic Alliance materially expands Hochschild's exploration efforts inMexico. EXMIN brings a large property package in the Sierra Madre gold belt innorthwestern Mexico with approximately 20 exploration projects. EXMIN's foundingmanagement has decades of experience in Mexico and the Sierra Madre Occidental. Under the Strategic Alliance agreement, Hochschild will also acquire a numbercommon shares of EXMIN at C$0.40 per share for aggregate gross amount of US$3million, which will be used by EXMIN to fund its portion of the Moris minefunding requirements. In addition, Hochschild has agreed to convert $1.5 millionprincipal amount of indebtedness owing to it by EXMIN into common shares atC$0.40 per common share. Upon completion of these transactions, Hochschild willown approximately 17.4% of the issued and outstanding common shares of EXMIN,based upon publicly available information. The EXMIN common shares are beingacquired for investment purposes. Hochschild may in the future increase ordecrease its ownership of securities of EXMIN from time to time depending onsuch factors as the business and prospects of EXMIN and future marketconditions. A copy of the "early warning report" to be filed by Hochschild on SEDAR underapplicable Canadian securities laws in connection with this news release will beavailable at www.sedar.com. Enquiries: Hochschild Mining plcWray Barber +44 (0)20 7152 6014Head of Investor Relations FinsburyRobin Walker +44 (0)20 7251 3801Public Relations Notes to Editors About Hochschild Hochschild Mining plc (HOC.L for Reuters / HOC LN for Bloomberg) is a publiccompany listed on the London Stock Exchange. Hochschild is a leading preciousmetals company with a primary focus on the exploration, mining, processing andsale of silver and gold. Hochschild currently operates four undergroundepithermal vein mines, three located in southern Peru and one in southernArgentina. Hochschild also has two advanced stage development projects, one ineach of Mexico and Peru and one early stage development project in Mexico. Inaddition, Hochschild has over twenty long-term prospects throughout LatinAmerica and has over forty years experience in the mining of precious metalepithermal vein deposits. For further information please visitwww.hochschildmining.com. About EXMIN EXMIN Resources Inc. is a company listed on the TSX Venture Exchange, currentlyfocused on the exploration and development of precious metal properties ofsignificant merit in the Sierra Madre gold belt of Northwestern Mexico. About Moris On 17 June 2006, Minera Hochschild Mexico, S.A de C.V., a wholly-ownedsubsidiary of Hochschild, entered into a contract with EXMIN, which holds miningconcessions relating to an area of approximately 9,889 hectares in the Morisdistrict of Chihuahua, Mexico, where the mineralisation represents lowsulphidation quartz-sulphide epithermal veins with gold and silver values. Hochschild possesses the exclusive right to assess and explore the area coveredby EXMIN's Mina Moris concessions and Hochschild and EXMIN intend tore-commission the Moris mine back into production in the third quarter of 2007. This information is provided by RNS The company news service from the London Stock Exchange