Intrepid Mines Limited

Intrepid Mines Limited

May 06, 2009 20:07 ET

Intrepid Mines Limited: Sale of Casposo Completed

BRISBANE, AUSTRALIA--(Marketwire - May 7, 2009) - Intrepid Mines Limited ("Intrepid") (TSX:IAU)(TSX:IXN)(ASX:IAU) is pleased to announce the completion of the previously announced (see news release of March 29, 2009) sale of its Casposo project in Argentina for a total consideration of US$22 million cash.

The sale was effected by way of transfer of all the shares in Intrepid's wholly-owned subsidiary, Intrepid Minerals Corporation, to purchaser Troy Resources NL ("Troy"). US$20 million was paid by Troy on completion of the transaction, and a further US$2 million will be payable six months after first gold production at Casposo.

Intrepid CEO, Brad Gordon, remarked: "The proceeds generated by this sale together with the current treasury position of US$19 million will be used to strengthen our operations at our 80,000 ounce per annum Paulsens gold mine in Western Australia, for further development of our Tujuh Bukit gold-silver oxide resource in East Java, Indonesia, which is located directly above a significant but separate copper-gold sulphide mineralised zone, whilst providing additional financial flexibility as we actively consider new opportunities to drive our near term corporate growth strategy."

For its part, Troy anticipates continuing and extending the excellent relationship established by Intrepid with the San Juan Government and Governor, whose offices, along with a number of other authorities in Argentina, contributed to the expeditious completion of this agreement. Troy has noted that, given the advantages of its current operating presence in Latin America, surplus plant equipment and cash reserves, they intend to commence construction at Casposo as soon as practically possible.

ABN: 11 060 156 452

Contact Information