Termination of Agreement relating to WAG

    RNS Number : 9860V
  Minmet PLC
  04 June 2008
   

    Stock Exchange Announcement

    4 June 2008

    For immediate release


    Minmet plc ("Minmet" or the "Company")

    Termination of Agreement relating to West African Gold SA ("WAG")


    Minmet plc ("Minmet or the "Company") (AIM: MNT) announces that the Company has entered into a Supplemental Agreement with West African
Logistics SA ("WAL") and Clio General SA ("Clio") ("the Supplemental Agreement") terminating a sale and purchase agreement dated 6 November
2007 relating to the purchase of shares in West African Gold SA ("WAG") ("the WAG Purchase Agreement").

    Under the terms of the WAG Purchase Agreement, Minmet had advanced a deposit of £100,000 and advanced further funds by way of working
capital to WAG and incurred costs in connection with the preparation of a Competent Person's Report valuing certain undeveloped gold and
diamond prospects in Guinea, West Africa ("the Prospects"). The total expenditure by Minmet in relation to WAG was approximately £260,000.

    The principal terms of the Supplemental Agreement are as follows:

    (i) In consideration of the termination of the WAG Purchase Agreement, Clio relinquished and will transfer its 5% equity interest in
Tucumcari Investments Limited to the Company;

    (ii) The Company shall transfer one million shares in Horizonte Minerals Plc, currently valued at approximately US$250,000 to Clio;

    (iii) The Company shall assign its rights and interests in all reports and other documents relating to the Prospects prepared by Behre
Dolbear International Limited ("Behre Dolbear") and the Company shall instruct and authorise Behre Dolbear to deliver all such reports and
documents to WAL or its nominee; and

    (iv) WAL shall transfer to the Company such number of shares in WAG as shall be equal to ten per cent. of the issued share capital of
WAG ("the Carried Interest Shares") with the intention that the Company shall benefit from the proposed admission to trading of WAG's
securities on a securities exchange at some stage in the future ("Admission").  WAL has further agreed that the Carried Interest Shares
shall at all times up to and including the date of Admission amount to ten per cent. of the issued share capital of WAG.

    (v) In the event that the Board of directors of Minmet is removed or changed within three months of the date of the Supplemental
Agreement, whereby there is an effective change of control of the Board of the Company, WAL shall have the option to buy back the Carried
Interest Shares in the Company for a consideration of £50,000 which shall be payable within 120 days of the exercise of such option.


    Commenting on the terms of the Supplemental Agreement, Denis Barrett, the Company's Finance Director said:

    "The original WAG transaction would have involved offering consideration in the form of either cash or heavily discounted shares in
Minmet, neither of which was attractive from the Minmet shareholders' point of view. We have therefore negotiated a termination of the WAG
Purchase Agreement on terms which involve giving up our interest in WAG (save for a 10% carried interest) in exchange for an enhanced
interest in the Tucumcari natural gas project. We are confident, based on our knowledge of the Tucumcari project that this will prove an
advantageous exchange for Minmet." 



    For further information, please contact:

 Minmet plc                                        [phone]
   Jon King , Chief Executive Officer
  
 College Hill, Public Relations                    [phone]
   Nick Elwes
   Paddy Blewer
  
 Nabarro Wells & Co. Limited, Nominated Adviser    [phone]


   Robert Lo / Richard Swindells


This information is provided by RNS
The company news service from the London Stock Exchange
 
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