Pasminco To Sell Ernest Henry Share To MIM


Pasminco Limited will sell its 49% interest in the Ernest Henry copper-gold mine in Queensland to MIM Holdings Limited.

MIM is currently the 51% owner and operator of Ernest Henry Mine.

Pasminco announced on 15 January that it had reached an agreement to sell its share to Aquila Resources Limited. However, that agreement was subject to the non-exercise of the pre-emptive right of MIM. As a result of the MIM decision, Pasminco will be required to pay a break fee of $3 million to Aquila.

The sale is for a consideration of $145 million cash. The agreement provides an option for MIM to pay a higher sale price of $150 million incorporating an interest bearing deferred component of $35 million, repayable over a maximum period of 9 years. The transaction is expected to complete on 24 April.

Pasminco will apply proceeds from the sale to retire debt.

The sale will complete the disposal of the non-zinc assets acquired by Pasminco through the takeover of Savage Resources Limited in 1999. That process realised a total of $247 million, after taking into account the $33 million Pasminco has received to date via loan repayments from Ernest Henry Mine and the $69 million received for the coal assets sold in July 1999.

Pasminco Managing Director and Chief Executive David Stewart said that Ernest Henry had made a solid contribution to earnings during the past 23 months, but a minority investment in a copper-gold mine did not fit with the Pasminco focus on zinc and lead.

For further information contact:

Trevor Shard
Group Manager - Investor Relations
++ 61 (3) 9288 9186 or 0419 584 515

Peter Griffin
Group Manager - Public Affairs
++ 61 (3) 9288 0463 or 0419 314 265

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