Metals Exploration Regulatory News (MTL)

23 Nov 2005 07:00

Metals Exploration PLC23 November 2005 Metals Exploration plc Runruno Project - Option to Purchase Agreement and Drilling Update 23 November 2005 Option to Purchase Agreement The directors of Metals Exploration plc ("MetalsEx" or the "Company") arepleased to announce today that the Company has agreed with Christian Mining Inc("CMI") the terms of an option that gives MetalsEx the exclusive option topurchase up to an additional 15% shareholding in FCF Mining Corporation ("FCF")(the "Option"). FCF is the holder of the Runruno Exploration Permit. MetalsEx, through a Memorandum of Agreement dated 1st February 2005, currentlyholds a 70% shareholding in FCF. Therefore the Option allows the Company toincrease its holding in FCF to up to 85%. This will effectively give the Companythe opportunity to acquire up to 85% of its Runruno gold and molybdenum project. A summary of the key terms of the Option are: 1 MetalsEx shall pay to CMI an annual Option fee of US$65,000 until the Option is either exercised or withdrawn by MetalsEx. MetalsEx has sole discretion to terminate the Option; 2 MetalsEx can exercise the Option, at any time, by acquiring CMI's remaining shareholding of FCF anywhere from 1% to 15%. The exercise price is the amount of US$400,000 for every 1% of CMI's shareholding of FCF, up to a maximum of US$6 million for all of CMI's remaining 15% shareholding of FCF; and 3 In the event that MetalsEx decides to exercise the Option but only for a part of and not the entirety of CMI's 15% shareholding in FCF, MetalsEx has the right to continue to have the Option to acquire the balance, by maintaining the terms and conditions of the Option. The exercise period of the Option is unlimited. Drilling Update The directors are pleased to announce that the Company's first drill hole of thecurrent diamond drilling has just been completed at Runruno and that sampleshave been submitted for analysis after the completion of the geological loggingand core splitting. The first assay results are anticipated to be received by the Company inapproximately two weeks' time. Steven Smith - Chairman +44 (0) 7797 721 858Jonathan Anderson - Investor Relations +44 (0) 7950 410 680 or + 63 (0) 916 226 7575Philip Haydn-Slater - W.H. Ireland Limited +44 (0) 20 7220 1666 This information is provided by RNS The company news service from the London Stock Exchange