Hillsborough Resources Limited

Hillsborough Resources Limited

October 05, 2005 09:52 ET

Hillsborough Resources: Hillsborough Announces Letter of Intent Signed with Anglo Coal on the Development of Hillsborough's Northeast BC Coal Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 5, 2005) - Hillsborough Resources Limited (TSX:HLB) is pleased to announce that it has signed a non-binding Letter of Intent ("LOI") with Anglo Coal, a division of Anglo American plc (LSE:AAL), providing for the possible acquisition by Anglo Coal of a minority equity position in Hillsborough and for a joint venture or joint ventures for the exploration and development of nine of eleven of Hillsborough's Northeast British Columbia metallurgical and PCI coal properties, including the Five Cabin property. The transaction envisaged by the LOI remains subject to the negotiation and signature of a definitive agreement by the parties and the definitive agreement, if signed, will be subject to a number of conditions precedent, including due diligence by Anglo Coal, approvals by the boards of Anglo American plc and Hillsborough, and the approval of the Toronto Stock Exchange. Further details of the proposed transaction will be released once a definitive agreement is signed.

David Slater, President & CEO of Hillsborough Resources stated, "We are very pleased to have been able to align ourselves with Anglo Coal on the potential development of our Northeast metallurgical coal properties. While we were quite prepared to go it alone, the presence of a highly professional organisation like Anglo adds exceptional depth to our ability to market the product, and Anglo's expertise will be invaluable in facilitating the development of a mining project of the scale we envisage for Five Cabin."

Anglo Coal is an international coal mining company, with interests in operations in South Africa, Australia, Venezuela and Colombia producing in excess of 90 million tonnes of coal per annum. The Anglo American group of companies is involved in the mining of, among others, gold, platinum, diamonds, iron ore and other industrial minerals.

Hillsborough Resources Limited is a coal mining company that operates the Quinsam underground thermal coal mine in Campbell River, British Columbia serving the local and west-coast U.S. cement industry, and the Crossville underground coal mine in Tennessee serving the regional power utility and industrial markets. We are also developing substantial metallurgical coal properties near Tumbler Ridge in the Northeast of British Columbia, as well as the Bingay Creek metallurgical coal project in the Elk Valley region of Southeast British Columbia.

"David J. Slater"

President & Chief Executive Officer

This release may contain forward-looking statements regarding the Company's business or financial condition. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Actual results could differ materially from those described in this news release as a result of factors including but not limited to the following: adverse exploration or development results; adverse due diligence findings; re-assessments of corporate or development objectives and requirements; additional technical developments and considerations; unexpected increases in the costs of producing coal, changes in international coal or transportation markets, a rapid change in the value of the Canadian dollar particularly with respect to the US dollar, a fundamental slow down in the North American, Asian or worldwide economies; and other factors. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

Contact Information

  • Hillsborough Resources Limited
    David Slater
    President & CEO
    (604) 684-9288
    (604) 684-3178 (FAX)