Strategic Alliance with EXMIN
Hochschild Mining PLC
09 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 Mexico
in an innovative and cost effective manner that is mutually beneficial for both
parties. EXMIN has already proved an excellent partner for Hochschild in the
development of our Moris mine and we look forward to working together to step up
our involvement in Mexico to deliver further value for all our shareholders.'
Hochschild Mining plc ('Hochschild'), the London listed Latin American precious
metals company and EXMIN Resources Inc. ('EXMIN'), a Toronto listed exploration
company focused on northwestern Mexico, have entered into a Strategic Alliance
with respect to their exploration efforts in Mexico.
Hochschild gains a right of first offer to develop, acquire or otherwise earn an
interest in certain of the properties located in Mexico over which EXMIN has an
exclusive interest, as well as any new claims, options, acquisitions or any
other form of interest obtained by EXMIN in properties in Mexico for a period of
at least 18 months.
This Strategic Alliance materially expands Hochschild's exploration efforts in
Mexico. EXMIN brings a large property package in the Sierra Madre gold belt in
northwestern Mexico with approximately 20 exploration projects. EXMIN's founding
management has decades of experience in Mexico and the Sierra Madre Occidental.
Under the Strategic Alliance agreement, Hochschild will also acquire a number
common shares of EXMIN at C$0.40 per share for aggregate gross amount of US$3
million, which will be used by EXMIN to fund its portion of the Moris mine
funding requirements. In addition, Hochschild has agreed to convert $1.5 million
principal amount of indebtedness owing to it by EXMIN into common shares at
C$0.40 per common share. Upon completion of these transactions, Hochschild will
own approximately 17.4% of the issued and outstanding common shares of EXMIN,
based upon publicly available information. The EXMIN common shares are being
acquired for investment purposes. Hochschild may in the future increase or
decrease its ownership of securities of EXMIN from time to time depending on
such factors as the business and prospects of EXMIN and future market
conditions.
A copy of the 'early warning report' to be filed by Hochschild on SEDAR under
applicable Canadian securities laws in connection with this news release will be
available at www.sedar.com.
Enquiries:
Hochschild Mining plc
Wray Barber +44 (0)20 7152 6014
Head of Investor Relations
Finsbury
Robin Walker +44 (0)20 7251 3801
Public Relations
Notes to Editors
About Hochschild
Hochschild Mining plc (HOC.L for Reuters / HOC LN for Bloomberg) is a public
company listed on the London Stock Exchange. Hochschild is a leading precious
metals company with a primary focus on the exploration, mining, processing and
sale of silver and gold. Hochschild currently operates four underground
epithermal vein mines, three located in southern Peru and one in southern
Argentina. Hochschild also has two advanced stage development projects, one in
each of Mexico and Peru and one early stage development project in Mexico. In
addition, Hochschild has over twenty long-term prospects throughout Latin
America and has over forty years experience in the mining of precious metal
epithermal vein deposits. For further information please visit
www.hochschildmining.com.
About EXMIN
EXMIN Resources Inc. is a company listed on the TSX Venture Exchange, currently
focused on the exploration and development of precious metal properties of
significant 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-owned
subsidiary of Hochschild, entered into a contract with EXMIN, which holds mining
concessions relating to an area of approximately 9,889 hectares in the Moris
district of Chihuahua, Mexico, where the mineralisation represents low
sulphidation quartz-sulphide epithermal veins with gold and silver values.
Hochschild possesses the exclusive right to assess and explore the area covered
by EXMIN's Mina Moris concessions and Hochschild and EXMIN intend to
re-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
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