Hochschild Mining plc
LSE : HOC

Hochschild Mining plc

March 04, 2010 16:20 ET

Sale of Zincore Shares

LONDON, UNITED KINGDOM--(Marketwire - March 4, 2010) - This press release is issued by Hochschild Mining plc (LSE:HOC) ("Hochschild" or "the Company"), with registered office located at 46 Albemarle Street, London, England, W1S 4JL, as required under applicable Canadian securities laws.

As a result of its purchase of Southwestern Resources Corp in May 2009, Hochschild acquired ownership of 38,100,000 common shares of Zincore Metals Inc ("Zincore") (TSX:ZNC), representing approximately 36.9% of the outstanding common shares of Zincore (the "Zincore Shares").

Hochschild announces today that it has sold its holding of 38,100,000 Zincore Shares (the "Disposition") for a total cash consideration of C$10.3 million (or C$0.27 per Zincore Share) leaving it with no further interest in Zincore. The Disposition was agreed pursuant to a private agreement. Hochschild disposed of its stake in Zincore as it does not constitute a core asset for the Company.

The Zincore Shares were purchased (the "Acquisition") by the Company's Executive Chairman, Mr Eduardo Hochschild, for a total cash consideration of C$10.3 million (or C$0.27 per Zincore Share). The Acquisition was agreed pursuant to a private agreement. Mr. Hochschild did not previously own or exercise control over any Zincore Shares. Mr. Hochschild acquired ownership and control over the Zincore Shares through an investment vehicle, Inversiones Pacasmayo SA, for investment purposes only and may choose, subject to market conditions, to make further investments or dispositions in securities of Zincore in the future.

The Disposition was approved on behalf of the Hochschild board by a committee comprising solely independent non-executive directors (the "Independent Committee") which has been advised by Canaccord Adams Limited that the terms of the Disposition are fair and reasonable as far as shareholders are concerned.

About Hochschild Mining plc:

Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.

Disclaimer

Canaccord Adams Limited, which is authorised and regulated by the Financial Services Authority ("FSA") , is acting exclusively for the Independent Committee and no-one else in relation to the Disposition and will not be responsible to any person (whether or not a recipient of this announcement) other than the Independent Committee under the Financial Services and Markets Act 2000 , the rules of the FSA or otherwise for providing the protections afforded to its clients or for any matter concerning the Disposition or for providing advice in relation to the Disposition or in relation to the contents of this announcement or any other transaction, arrangement or matter referred to herein. 

Contact Information

  • Hochschild Mining plc
    Isabel Lutgendorf
    Head of Investor Relations
    +44 (0)20 7907 2934
    or
    Finsbury
    Robin Walker
    Public Relations
    +44 (0)20 7251 3801