EXMIN Resources Inc.
TSX VENTURE : EXM

EXMIN Resources Inc.

July 09, 2007 01:30 ET

EXMIN Signs Strategic Alliance and Financing Agreement With Hochschild Mining Group

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2007) - EXMIN Resources Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to announce that it has signed a Letter of Agreement with the Hochschild Mining Group (Hochschild) (LSX:HOC) to enter a Strategic Alliance whereby Hochschild may subscribe to purchase up to U$4.5 million in EXMIN common stock at a price of C$0.40 per share. In turn, EXMIN will grant a First Right of Offer to Hochschild on any of its available projects.

This share purchase is independent of the obligatory payment by Hochschild to EXMIN in cash or equivalent in private placement proceeds, pursuant to the exploration joint venture agreement, which was signed by the Companies in July 2006.

"This is a monumental partnership for EXMIN and Hochschild," stated Karl Boltz, President of EXMIN. "EXMIN can continue to meet its financial obligations at the Moris Mine without having to access capital markets at this time. Hochschild will have first opportunity to make an offer on any of EXMIN's twenty-plus available projects. Under the direction of Dr. Craig Gibson, Executive Vice-President of Exploration, EXMIN has shown an ability to identify, stake and acquire numerous impressive projects and land packages that attract the majors."

The Strategic Alliance Deal

EXMIN will grant to Hochschild the First Right of Offer on any and all of its available projects for a period of eighteen months. In consideration for this right and as an investment in EXMIN, Hochschild may subscribe to purchase common shares of EXMIN at a price of $0.40 per share (twenty per cent discount to the average recent share price), for cash proceeds of US $3 million. These Strategic Alliance private placement proceeds will be earmarked for Moris Mine rehabilitation and operation costs, until positive cash flow at the mine is anticipated, by Q3 07.

EXMIN has granted the right to Hochschild to convert the existing U$1.5 million line of credit into EXMIN common shares at the same discounted price of C$0.40 per share.

Hochschild has also granted to EXMIN a new U$1 million line of credit available immediately for use on any exploration project where the Companies may be involved together. This new line of credit will be paid one year after drawdown from the positive cash flows to be generated at the Santa Maria de Moris Mine.

The aforementioned transactions are subject to regulatory approval, and any shares issued will be subject to a four-month hold period.

About Hochschild

Minera Hochschild Mexico (MHM) is a subsidiary of Hochschild Mining plc (HOC.L for Reuters / HOC LN for Bloomberg), a publicly held company listed on the London Stock Exchange. Hochschild is a leading precious metals company with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. Hochschild also has two advanced stage development projects, one in each of Mexico and Peru and one early stage development project in Mexico. In addition, Hochschild has over twenty long-term prospects throughout Latin America and has over forty years experience in the mining of precious metal epithermal vein deposits. For further information please visit www.hochschildmining.com.

Neither EXMIN's joint venture partner, Minera Hochschild Mexico, nor Hochschild Mining plc or any of its subsidiaries, accept any responsibility for the use of project data or the adequacy or accuracy of this release.

About EXMIN

EXMIN Resources Inc. (EXMIN) is currently focused on the exploration and development of precious metal properties of exceptional merit in the Sierra Madre gold belt of Northwestern Mexico as well as in other highly mineralized areas of Mexico.

Note: EXMIN Resources Inc. (EXMIN) has taken all reasonable care in producing and publishing information contained in this news release. Material in this news release may still contain technical inaccuracies, omissions or typographical errors, for which EXMIN assumes no responsibility. This news release may include certain "forward-looking statements" including but not limited to comments regarding predictions and projections. All statements, other than statements of historical fact, included in this news release, including, without limitation, statements regarding potential mineralization, exploration results, and future plans and objectives of EXMIN, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in documents filed from time to time with the regulatory authorities.

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

Contact Information

  • EXMIN Resources Inc.
    Karl J. Boltz
    President & CEO
    1-888-244-0304
    or
    EXMIN Resources Inc.
    Investor Relations
    1-888-244-0304
    Email: info@exmin.com
    Website: www.exmin.com