EuroZinc Mining Corporation
TSX : EZM
AMEX : EZM

EuroZinc Mining Corporation

January 25, 2006 07:40 ET

EuroZinc Announces Secondary Distribution

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2006) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

EuroZinc Mining Corporation ("EuroZinc") (TSX:EZM)(AMEX:EZM) announced today that two of its major shareholders, Resource Capital Funds I and II LP, have entered into an agreement to sell an aggregate of 71,430,000 shares of EuroZinc at a price of $1.40 per share to an underwriting syndicate led by TD Securities Inc. and National Bank Financial Inc. for resale to the public by way of a prospectus offering in Canada and private placement in the United States. Resource Capital Fund I LP has agreed to sell its entire position of 35,879,516 shares representing 6.6% of the issued and outstanding shares of EuroZinc, while Resource Capital Fund II LP has agreed to sell 35,550,484 of its current position of 131,691,018 shares of EuroZinc.

Resource Capital Fund III LP currently owns 2,100,000 shares of EuroZinc representing 0.4% of the issued and outstanding total, but in an unrelated transaction has advised EuroZinc of its intention, prior to February 1, 2006, to exercise warrants it holds to acquire an additional 1,400,000 shares of EuroZinc. Subsequent to the exercise of such warrants and the completion of the foregoing secondary distribution of EuroZinc shares by Resource Capital Funds I and II LP, Resource Capital Funds II and III LP will together beneficially own a total of 99,640,534 shares representing 18.4% of the issued and outstanding shares of EuroZinc. As part of the transaction, Resource Capital Fund II LP has agreed not to sell any shares for a period of 90 days from closing of the offering.

EuroZinc will not receive any proceeds from the sale of these shares by Resource Capital Funds I and II LP, but will receive $840,000 from the exercise of the warrants by Resource Capital Fund III LP.

EuroZinc is a Canadian based company engaged in the acquisition, exploration, development and mining of base metal deposits internationally.

This news release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed financial information about the company and management, as well as financial statements.

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

Contact Information

  • EuroZinc Mining Corporation
    Colin K. Benner
    Vice Chairman and CEO
    (604) 681-1337
    or
    EuroZinc Mining Corporation
    Ron Ewing
    Exec. Vice President
    (604) 681-1337
    or
    EuroZinc Mining Corporation
    Troy Winsor
    Mgr., Investor Relations
    1-888-225-9662
    www.eurozinc.com