Print   



Monterrico Metals plc

('Monterrico' or the 'Company')

30 December 2008                                                                                     AIM: MNA

Approval for Important Mining Concession Acquisition

LONDON, 30 December 2008: Monterrico is pleased to announce Peruvian Government approval of its principal shareholder's request to acquire an additional buffer zone around the eight core mining concessions of the Rio Blanco Project. The additional area comprises 27 mining concessions totalling 21,794.69 hectares located in the Provinces of Huancabamba and Ayabaca, Department of Piura, in northern Peru.  The eight core concessions around Rio Blanco total 6473.15 hectares and together with the additional areas, represent a total of 28267.84 hectares in contiguous mining concessions around Rio Blanco in Piura.

Because these concessions are located within 50 Km of the Peruvian Border, special government approval for the acquisition was required in accordance with Peruvian Law. The request filed by the majority shareholder of the Company in April 2007 was approved by the Ministry of Defence on December 19, 2007, following a positive report from the Joint Chiefs of the Peruvian Army. Such approval was confirmed by the President of the Council of Ministers, the Minister of Energy and Mines and the Minister of Defence.  Formal approval was granted by way of Supreme Decree 024-2008-DE dated December 1st, 2008 and published in Peru's Official Gazette on December 27, 2008 containing the signatures of the President of the Republic of Peru, the President of the Council of Ministers, the Minister of Energy and Mines, and the Minister of Foreign Affairs in representation of the Ministry of Defence.

In obtaining this approval, the Company has successfully created an extensive buffer zone around Rio Blanco that allows for control of the development of mining activities in the area. This ensures contained natural resources and the environment will be respected in accordance with company policy. The buffer zone guarantees the integrity of the ecological conservation area proposed for Rio Blanco which is considered a vital component of the current development plan for the project. In addition, the social viability of Rio Blanco is protected by eliminating any activity of other mining companies in the vicinity of the Project. The Company reiterates that any exploration or mining activities in these new concessions would require proper environmental permits and other approvals from the Peruvian government and respective surface land owners.

For more information please contact:

 

Monterrico Metals plc

Susan Li, Finance Director                                 + 852 2803 2738

Andrew Bristow, Investor Relations Manager     + 511 226 3322

    

EVOLUTION SECURITIES LIMITED

(Nominated adviser)                                           +44 (0) 20 7071 4300

Rob Collins

Tim Redfern

    

EVOLUTION SECURITIES CHINA LIMITED 

(Financial adviser and broker)                            +44 (0) 20 7220 4850

Nick Martin 

ENDACQEANAEDSEPFEE