First Quantum Minerals Ltd.
LSE : FQM
TSX : FM

First Quantum Minerals Ltd.

June 17, 2008 19:07 ET

First Quantum Minerals Receives Court Approval for Plan of Arrangement With Scandinavian Minerals

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2008) - First Quantum Minerals Ltd. ("First Quantum" or the "Company") (TSX:FM)(LSE:FQM) is pleased to announce today that it has obtained a final order from the Ontario Superior Court of Justice (Commercial List) approving the previously announced Plan of Arrangement (the "Arrangement"), pursuant to which all of Scandinavian Minerals Ltd. ("Scandinavian") common shares will be acquired by FQML Scandinavia Inc., a wholly-owned subsidiary of First Quantum, for $9.00 in cash and 0.01 of a First Quantum share for each common share of Scandinavian.

The Arrangement was approved by special resolution of the Scandinavian shareholders, at a special meeting of shareholders held June 12, 2008.

The Arrangement is expected to close on June 18, 2008, and remains subject to customary closing conditions.

About Scandinavian Minerals

Scandinavian Minerals is a Canadian public company listed on the Toronto Stock Exchange under the symbol "SGL" and on the Frankfurt Freiverkehr market under the symbol W3M. The Company's current focus is the development of its 100%-owned Kevitsa nickel-copper-PGE project in northern Finland.

Kevitsa, situated in northern Finland, is one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history. The Kevitsa deposit is easily accessible by road. Water and hydroelectric power are available nearby.

In April 2007, Scandinavian Minerals commenced the Feasibility Study for the Kevitsa project. The Study is being coordinated by St Barbara LLP of London, UK. The metallurgical process has been developed by the Mineral Processing Laboratory of the Geological Survey of Finland. Plant engineering and design is being performed by Outotec Oyj. The Feasibility Study is based on an open pit operation mining approximately 5 million tons per year of ore, with production of nickel and copper concentrates for sale to local or overseas smelters and is expected to be completed in the second quarter of calendar 2008.

About First Quantum

First Quantum is a mining and metals company whose principal activities include mineral exploration, development and mining. First Quantum produces LME grade "A" copper cathode, copper in concentrate, gold and sulphuric acid. First Quantum's operations in Zambia include the 100% owned Bwana Mkubwa SX/EW facility and sulphuric acid plants and the 80% owned Kansanshi open pit copper-gold deposit. In the Democratic Republic of Congo, First Quantum operates both the 100% owned Lonshi open pit copper mine, which provides oxide copper ore for processing at Bwana Mkubwa, and the 95% owned Frontier copper mine. In addition, First Quantum holds a 65% interest in the Kolwezi copper-cobalt tailings project currently under development. In Mauritania, First Quantum operates the 80% Guelb Moghrein copper-gold mine.

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

G. Clive Newall, President

Certain information contained in this news release are "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 London Stock Exchange.

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Listed in Standard & Poor's

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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.
    Clive Newall
    President
    +44 140 327 3484
    +44 140 327 3494 (FAX)
    Email: clive.newall@fqml.com
    Website: www.first-quantum.com
    or
    Hogarth Partnership Ltd.
    Harriet Pask
    +44 (0) 20 7357 9477
    or
    Hogarth Partnership Ltd.
    Sarah MacLeod
    +44 (0) 20 7357 9477