Rio Narcea Acquires Additional Stake in Chariot Resources
Thursday October 5, 3:02 pm ET
ca.us.biz.yahoo.com
TORONTO, ONTARIO--(MARKET WIRE)--Oct 5, 2006 -- Rio Narcea Gold Mines Ltd. ("Rio Narcea" or "the Company") (TSX:RNG.TO - News)(AMEX:RNO - News) today announced that it has agreed to purchase an aggregate of 31,812,500 common shares and 11,532,000 warrants in the capital of Chariot Resources Limited (TSX:CHD.TO - News) from Amerigo Resources Ltd. (TSX:ARG.TO - News). This purchase constitutes approximately 13.7% of the outstanding common shares and the common shares and warrants together constitute 14.7% of the common shares and warrants outstanding of Chariot. The purchase is to be completed at C$0.65 per common shares and C$0.30 per warrant for an aggregate purchase price of C$24,137,725. Each share purchase warrant entitles Rio Narcea to acquire an additional common share of Chariot at a price of C$0.35 per share until December 22, 2006.
This purchase is in addition to the 6,259,500 shares and 1,780,000 warrants purchased by the Company through the facilities of the Toronto Stock Exchange in the last few months, which brings Rio Narcea's total shareholding in Chariot to 16.4% of common shares of Chariot and 17.4% of the common shares and warrants outstanding of Chariot. In order to complete the trade through the TSX, Rio Narcea has agreed to offer to purchase certain share and warrants in the market prior to initiation of this trade.
The common shares and warrants will be acquired in a private transaction to close on October 20, 2006. The transaction will be completed through the facilities of the Toronto Stock Exchange. Rio Narcea has purchased these securities for investment purposes. Other than as set out above, Rio Narcea might acquire additional securities if they become available at prices that are attractive to Rio Narcea, but has no current future intention of becoming a control person in Rio Narcea.
"Rio Narcea is impressed with the potential of Chariot and its Marcona Copper Project, which is located in Southern Peru on the same Iron Oxide Copper Gold (IOCG) belt which hosts Mantos Blancos and Candelaria. Given our experience in developing and bringing mines into production, we look forward to contributing to the development of the Marcona Copper Project in whatever constructive way we can," said Chris von Christierson, Chairman and CEO of Rio Narcea.
Rio Narcea Gold Mines, Ltd. is a growing Canadian mineral resource company with operations, development projects and exploration activities in Spain, Portugal and Mauritania. The Company currently produces nickel at its Aguablanca nickel-copper-platinum group metals (PGM) mine in southern Spain and gold at it's at El Valle and Carles projects in northern Spain. Closure of the northern Spanish gold mines is planned for by the end of 2006. Construction of its new Tasiast gold project in Mauritania, West Africa, is underway, with production expected in 2007.
Forward-looking Statements
This press release may contain certain "forward looking statements" within the meaning of the United States securities laws. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, capital expenditures, exploration efforts, financial needs, and other information that is not historical information. The forward-looking statements contained herein are based on Rio Narcea's current expectations and various assumptions as of the date such statements are made. Rio Narcea cannot give assurance that such statements will prove to be correct.
Factors that could cause Rio Narcea's actual results to differ materially from these statements include, but are not limited to, changes in gold and nickel prices, the timing and amount of estimated future production, unanticipated grade changes, unanticipated recovery problems, mining and milling costs, determination of reserves, costs and timing of the development of new deposits, metallurgy, processing, access, transportation of supplies, water availability, results of current and future exploration activities, results of pending and future feasibility studies, changes in project parameters as plans continue to be refined, political, economic and operational risks of foreign operations, joint venture relationships, availability of materials and equipment, the timing of receipt of governmental approvals, capitalization and commercial viability, the failure of plant, equipment or processes to operate in accordance with specifications or expectations, accidents, labour disputes, delays in start-up dates, environmental costs and risks, local and community impacts and issues, and general domestic and international economic and political conditions.
Rio Narcea undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The reader is cautioned not to place undue reliance on forward looking statements.
Contact:
Contacts:
Rio Narcea Gold Mines, Ltd.
Chris von Christierson
Chairman & CEO
+ (44) 207 629 2252
Email: cvc@sprospecting.com
Rio Narcea Gold Mines, Ltd.
Omar Gomez
C.F.O.
+ (34) 98 573 3300
Email: omar.gomez@rngm.es
Website: rionarcea.com
Roth Investor Relations, Inc.
Michelle Roth
+1 732 792 2200
Email: michelleroth@rothir.com
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Source: Rio Narcea Gold Mines, Ltd. |
