Petaquilla Minerals Ltd.
TSX : PTQ
OTC Bulletin Board : PTQMF
FRANKFURT : P7Z

Petaquilla Minerals Ltd.

May 17, 2006 17:00 ET

Petaquilla Signs Agreement with Eurogold Mining, Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 17, 2006) - Mr. Michael Levy, the President of Petaquilla Minerals Ltd. (TSX:PTQ)(OTCBB:PTQMF)(FWB:P7Z) ("the Company"), is pleased to announce that the Company has entered into an agreement with Eurogold Mining, Inc. ("Eurogold"), for the exploration and development of the San Juan Concessions in Panama. The San Juan Property is adjacent to the Company's Molejon Gold Project and the Petaquilla porphyry copper project in west central Panama. Eurogold is a private Nevada company.

Under the agreement, Eurogold may earn a 60% interest in the San Juan Property by incurring exploration expenditures of at least US$6,000,000, by paying Petaquilla US$600,000 in cash and by causing to be issued to Petaquilla 3,000,000 shares of the public company ("Pubco") to which Eurogold will assign its interest in the property, all over a period of three years. If Pubco acquires a 60% interest in the property, it may increase its interest to 70% by incurring US$3,000,000 in additional exploration expenditures in the fourth year. The Company will be the operator of the project.

The Company is pleased to have Eurogold and Pubco join the Company and its partners in the increasing levels of exploration and development in the Cerro Petaquilla area of the Republic of Panama.

On behalf of the Board of Directors of

PETAQUILLA MINERALS LTD.

Michael Levy, President and Director


No stock exchange has approved or disapproved the information contained herein.

Contact Information

  • Petaquilla Minerals Ltd.
    Michael Levy
    President and Director
    (604) 694-0021
    (604) 694-0063 (FAX)
    www.petaquilla.com