Acquisition

RNS Number:0643O
Minco PLC
29 July 2003

  MINCO,THE AIM LISTED PRECIOUS METAL AND ZINC EXPLORER, HAS AGREED TO ACQUIRE
              ORCA GOLD WHICH HAS MEXICAN SILVER AND GOLD PROJECTS



In commenting on the acquisition, John Teeling, chairman of Minco said, "
Successful exploration requires good projects, good people and money. The
acquisition of Orca brings all three. It will complement the excellent portfolio
of gold and zinc properties held in Ireland."



Details of the deal are as follows:-



-   Minco will acquire Orca Gold for 35 million Minco shares which will give 
Orca shareholders 49.6 % of Minco on full conversion. Post exercise of options 
and the placing referred to below, the Orca shareholders stake will reduce to 
46% of the expanded share capital.



-   Orca has significant gold and silver concessions in Mexico, has raised more 
than $1m in shareholder equity and will hold $450k cash on closure.



-   The Orca founders - Roger Turner, Matthew Dorman and Richard Thornton will
become directors of Minco. They will not have service contracts but will be on a
monthly salary of #4,000 stg each.



-   Orca's Mexican assets include two high grade silver properties, one gold
property and an option on the Laguna silver tailings project estimated to
contain 20 million tonnes averaging 90 g/t silver. All of the projects are in
the State of Zacatecas which currently produces 17% of the world's silver.



-   Orca has commenced a work programme on the three concession areas which
consists of mapping, trenching and diamond drilling while an updated feasibility
study into a 1 million tonnes a year silver-leaching project for Laguna will be
initiated prior to year-end.



-   Orca has identified other potential gold and silver opportunities in Mexico
and in the Former Soviet Union.



-   Roger Turner, who will become deputy chairman, is the former president of
Nelson Gold and is the founder of Oxus Gold, the AIM listed Uzbek gold miner.
Matthew Dorman has managed construction projects for leaching operations
worldwide. Richard Thornton has several years experience in senior financial
positions. Paul Power has decided to step down as a director of Minco.



-   Work will continue on the current portfolio of Irish gold and zinc licences.
A prospecting programme for the recently acquired gold licences in Avoca and
Kildare will commence shortly. Exploration results for the Pallas Green licence
block are being evaluated.



-   The current directors and staff of Minco will support the deal by exercising
their options over shares for a cash consideration of #66,000 stg.



-   A private placement at 5p stg a share has raised #123,000 stg. John Teeling
and Jim Finn have subscribed for 50% of the placing.



-   The agreement, which is subject to legal and regulatory approvals, is
expected to close no later than August 31st, 2003.



In a further comment John Teeling said, "This is a good deal for Minco. Mexico
is the world's largest source of silver, a metal emerging from a long period in
the doldrums. The best place to find a mine is where there was a mine. The
historic records on the Mexican properties give me great confidence that our
forthcoming drilling programme will have early success. The figures on the
Laguna silver tailings project look very interesting. This could be our first
producer. The three new directors have outstanding track records. They are
committing not only their time but also their money. We will make full use of
their skills on the development of our top class portfolio of Irish zinc and
gold licences. Paul Power was a founding director of the revived Minco then
known as Irish Marine Oil. He has been a valued colleague for 18 years and I
thank him for his help during that time. We now have excellent gold, silver and
zinc properties with other opportunities on the horizon. We have full time
experienced successful managers. And, we have the money to conduct the
exploration. An exciting time is ahead".



The cash raised by Minco and Orca is enough to fund an active exploration
programme into 2004.



The recent rise in the silver price and an expected zinc upturn place the new
company in an advantageous position to exploit both commodities.





                                  www.minco.ie


                      This information is provided by RNS
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