First Quantum Minerals Ltd.

First Quantum Minerals Ltd.

August 16, 2006 12:39 ET

Acquisition of Adastra Minerals by First Quantum Minerals

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2006) - First Quantum Minerals Ltd. ("First Quantum" or the "Company") (TSX:FM)(LSE:FQM) today announced, further to its announcement of August 14, 2006, that after final determination of deficiencies in respect of deposits, the number of valid deposits received as at August 11, 2006 pursuant to the arrangement involving First Quantum and Adastra Minerals Inc. ("Adastra"), and the consideration payable to Adastra shareholders who deposited their shares as at such date, has been revised. Letters of transmittal have been received in respect of the valid deposit on August 11, 2006, of approximately 21 million shares, which will now result in the issuance of approximately 1.2 million common shares of First Quantum. Payment of a total of approximately Cdn$ 9.8 million in cash is expected to be made on or about August 16, 2006. Cash payments will be funded directly from the Company's ongoing cash resources. Adastra shareholders who elected to receive First Quantum common shares will now receive Cdn$0.4339 in cash and 0.0581 of a First Quantum common share for each Adastra common share deposited subject to adjustment in respect of fractional shares. Adastra shareholders who elected to receive cash will receive Cdn$2.92 for each Adastra common share deposited. The amount of Adastra shares remaining to be deposited under the arrangement is approximately 500,000.

Adastra's common shares have been delisted both from the Alternative Investment Market of the London Stock Exchange and the TSX. Adastra has ceased to be the equivalent of a reporting issuer in the United States and is in the process of applying to cease to be a reporting issuer in the relevant jurisdictions of Canada.

Forward-Looking Statements

Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and forward-looking information under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the prices of gold, copper, cobalt and sulphuric acid, estimated future production, estimated costs of future production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual prices of copper, gold, cobalt and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the Alberta, British Columbia, and Ontario Securities Commissions, the Autorite des marches financiers in Quebec, the United States Securities and Exchange Commission and the Alternative Investment Market operated by the London Stock Exchange.

On Behalf of the Board of Directors of First Quantum Minerals Ltd.

G. Clive Newall, President


Listed in Standard and Poor's

Sedar Profile #00006237

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • First Quantum Minerals Ltd. - North America
    Geoff Chater
    (604) 688-6577 or Toll Free: 1-888-688-6577
    First Quantum Minerals Ltd. - North America
    Bill Iversen
    (604) 688-6577 or Toll Free: 1-888-688-6577
    (604) 688-3818 (FAX)
    First Quantum Minerals Ltd. - United Kingdom
    Clive Newall
    + 44 140 327 3484
    + 44 140 327 3494 (FAX)
    First Quantum Minerals Ltd. - United Kingdom
    Carina Corbett
    + 44 20 7907 4761