PGM Ventures Corporation

PGM Ventures Corporation

May 30, 2006 10:43 ET

PGM Ventures Corporation: Northcote Holdings Limited Abandons Dissident Proxy Circular

TORONTO, ONTARIO--(CCNMatthews - May 30, 2006) - PGM Ventures Corporation ("PGM")(TSX VENTURE:PPG) announces that it has received the following
in writing and by email, from external legal counsel for Northcote Holdings
Limited ("Northcote"), dated May 29th, 2006.

"Northcote has advised us, and has instructed us to advise you, that Northcote will not prepare a dissident's proxy circular at this time. Northcote would also like to congratulate the board of PGM Ventures Corporation on the offer from Dundee Resources Limited to complete a $25 million financing as announced in PGM's news release dated May 23rd, 2006."

The statement above follows the notification previously received by the Company and announced April 28, 2006 wherein Northcote stated dissatisfaction with the Company's equity financing initiatives and advised the Company of Northcote's intent at that time to launch a dissident shareholder proxy to change the board and vote against financing.

About PGM

PGM's prime focus is continuing the development of its Aguas Tenidas copper/zinc project located in the Region of Andalucia, SW Spain. In January this year, a feasibility study on the project was received from SRK Consulting of Cardiff UK, which demonstrated the technical feasibility and economic viability of the project. The mine has sufficient reserves for a 13 year operating life a production rate of 1.60 million tonnes annually. PGM has also signed a long term offtake agreement with Trafigura Beheer AG for the sale of all its metal concentrates from Aguas Tenidas. The Company is in the process of arranging the financing required for the US$168.2 million project through a combination of project bank debt, subordinated debt, and equity. Construction is expected to begin in third quarter 2006, with initial commercial production of metal concentrates commencing in early 2008. PGM is listed on Tier 2 of the TSXV, and as at May 25th, 2006 had 98,536,231 shares issued. The Annual General Meeting is scheduled for June 27th, 2006; the record date for this meeting is May 31st, 2006.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are in Canadian dollars unless otherwise noted.

The TSX Venture Exchange does not accept responsibility for the adequacy of accuracy of this release.

Contact Information

  • PGM Ventures Corporation
    Peter Miller
    1 (416) 815-8666
    PGM Ventures Corporation
    Norm Brewster
    1 (416) 815-8666