General Minerals Corporation

General Minerals Corporation

May 04, 2007 08:59 ET

General Minerals Corporation Announces Formation of a New Gold-Copper Focused Company

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 4, 2007) - General Minerals Corporation ("GMC") (TSX:GNM) is pleased to announce that it is proceeding with plans to spin off its North American assets in the US and in Mexico to a new corporation in a manner similar to its recent successful spin-off of its South American assets into South American Silver Corp. (TSX:SAC) (see GMC PR07-03, Feb. 19, 2007). The plan calls for this new gold-copper focused company to eventually become a publicly traded company. Ralph Fitch, President and CEO of GMC said: "With the appreciation in the gold and copper prices and positive fundamentals for both metals, management and the board of directors of GMC are investigating various ways to maximize the value of its North American assets for the Company's shareholders, and the board and I believe that this is an opportune time to proceed with this plan." At the same time GMC's board of directors is continuing to evaluate various other opportunities for the parent company in order to maximize shareholder value. GMC remains well financed (see GMC PR07-05, March 30, 2007).

General Minerals Corporation is an international minerals exploration company which has traditionally focused its activities in North and South America. In February of this year, GMC successfully spun off its three South American mineral properties into South American Silver Corp. through an IPO that raised gross proceeds of approximately Cdn$19.6 million. GMC holds 8.6 million common shares of South American Silver Corp., representing approximately 18.8% of the issued and outstanding shares of South American Silver Corp. These shares are subject to restrictions on resale, the net effect of which is that until August 19, 2007, unless GMC receives the consent of MGI Securities Inc., none of these shares may be sold. On August 19, 2007, 4.3 million common shares will be released from escrow and contractual restrictions, with a further 2.5 million shares being released on February 19, 2008 and August 19, 2008.

Forward-looking Statements

Statements in this release that are forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

The material factors and assumptions that were applied in making the forward-looking statements in this news release include:

a) the state of the financial markets at the time of any public offering;

b) the ability to successfully finance the new company and, to that end, the Company is pursuing financing options for the new company; and

c) receipt of regulatory approvals.

SEC 12g3-2(b): 82-34810

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