Intrepid Minerals Corporation
TSX : IAU

Intrepid Minerals Corporation

June 07, 2006 17:33 ET

Intrepid Shareholders Approve Merger with Nustar

TORONTO, ONTARIO--(CCNMatthews - June 7, 2006) - Intrepid Minerals Corporation (TSX:IAU) is pleased to announce that Shareholders of Intrepid Minerals Corporation met in Toronto today and voted overwhelmingly in favour of the proposed merger with NuStar Mining Corporation Limited ("NuStar"). Under the terms of the merger, NuStar will acquire all of the outstanding shares of Intrepid via a Canadian Plan of Arrangement. Shareholder turn-out for the meeting was the highest recorded in the ten year history of the Company, and 99.9 percent of votes cast were in favour of the merger, requiring a 66 2/3 percent threshold of security holders and 50 percent of shareholders.

NuStar shareholders are scheduled to meet in Perth on June 26, 2006. Subject to NuStar shareholders approving the necessary resolutions, the Ontario Superior Court will be requested to provide final approval for the Plan of Arrangement at a hearing scheduled for June 27, 2006. Following court approval the merger is expected to take effect on or about July 4, 2006.

This merger will unite NuStar's established Western Australian gold production with Latin American gold/silver exploration and development. The combination of a top ten Australian gold producer and the emerging producer status of Intrepid will create a new intermediate producer with total cash costs below its peer group. The new company will be focused on the growth and development of its gold and silver business and realizing value from its existing precious metal exploration assets.

NuStar commenced gold production in June 2005 at its high grade underground Paulsens mine in Western Australia and expects to produce an average of 80,000 oz per year for the next five years based on current reserves to a depth of 300 metres. The deposit has also demonstrated mineral potential below 300 metres and is complemented by a substantial exploration potential within its regional tenement portfolio. A drilling program to demonstrate this potential is currently underway. Please refer to press releases #05-18 and #06-17 for further details on the merger and the Paulsens mine results.

Intrepid Minerals is a TSX-listed company engaged in the acquisition, exploration and development of mineral prospects. The Company, either directly or through joint venture partnership, holds interests in several gold-silver and silver-base metal properties in Argentina, El Salvador, and Canada. Intrepid has 59,062,936 shares outstanding.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations. These forward-looking statements include a variety of risks and uncertainties that could cause actual results to differ materially from those reflected herein. Risk and uncertainties about Intrepid Minerals and NuStar Mining business are more fully discussed in their Management's Discussion and Analysis published in the Company's Annual Report and in the Annual Information Form available on SEDAR at www.sedar.com.

Contact Information

  • Grove Communications Inc.
    Stephen Coates and Cathie Simon
    (416) 368-4525 or Toll Free: (866) 409-4716
    (416) 368-3859 (FAX)
    or
    Intrepid Minerals Corporation
    Laurence Curtis, PGeo.
    President & CEO and designated Qualified Person
    (416) 368-4525 or Toll Free: (866) 409-4716
    (416) 368-3859 (FAX)
    info@intrepidminerals.com
    www.intrepidminerals.com