Petaquilla Minerals Ltd.
OTC Bulletin Board : PTQMF

Petaquilla Minerals Ltd.

June 29, 2009 09:00 ET

Petaquilla signs Memorandum of Understanding for 25 MW Hydroelectric Plant in Panama

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2009) - Petaquilla Minerals Ltd. ("PTQ") (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) is pleased to announce that its wholly-owned subsidiary Panama Central Electrica, S.A. ("PCE") has entered into a Memorandum of Understanding ("MOU") with Generadora Hidroelectrica Santa Maria, S.A. ("Santa Maria") for the development of a 25MW hydroelectric plant (the "Hydro Project") in the Province of Veraguas, Panama. The MOU establishes the general framework within which the partners PCE and Santa Maria will work to advance the Hydro Project to the stage of a bankable feasibility study. The partners will also work on updating the 1998 Environmental Impact Study which was previously approved by the Panamanian regulatory agencies by way of resolution no. IA-012-99 in November of 1998. Upon obtaining a positive bankable feasibility study, the partners intend to commence construction in the fourth quarter of 2010 and ownership of the Hydro Project will be based on capital contribution. The partners will work in good faith to establish definitive terms for the venture as quickly as practicable. In addition, the MOU also contemplates the subsequent development of additional hydro power projects in the central provinces of Panama with cumulative potential of up to 100MW.

PTQ owns all the issued shares of PCE through its subsidiary Petaquilla Infrastructure Ltd. ("PQI"). As previously announced on May 21, 2009, subject to all requisite shareholder and regulatory approvals, PTQ continues to advance towards completing the spin-out of PQI by the third quarter of 2009.

About Petaquilla Minerals Ltd. - Petaquilla Minerals Ltd. is an emerging gold producer that recently commissioned the operation at its 100% owned Molejon Gold Project. Full commercial production is expected to occur in the second half of 2009. Anticipated throughput for the project during the first year of production will be 2200 tonnes per day. The plant will utilize three ball mills and a carbon-in-pulp processing facility.

On behalf of the Board of Directors of PETAQUILLA MINERALS LTD.

Richard Fifer, President and Chief Executive Officer

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

Contact Information

  • Petaquilla Minerals Ltd.
    Richard Fifer
    President and Chief Executive Officer
    (604) 694-0021 or Toll free: 1-877-694-0021
    (604) 694-0063 (FAX)