LionOre Mining International Ltd.
TSX : LIM
ASX : LIM
LSE : LOR
BOTSWANA : LIONORE

LionOre Mining International Ltd.

November 19, 2006 16:58 ET

LionOre Sells Non-Strategic Australian Nickel Exploration Assets for A$25 million

TORONTO, ONTARIO--(CCNMatthews - Nov. 19, 2006) - LionOre Mining International Ltd. ("LionOre"), (TSX:LIM)(ASX:LIM)(LSE:LOR)(BSE:LIONORE) announces the sale of certain non-strategic Australian nickel exploration assets to Kagara Zinc Ltd (ASX: KZL) for the cash consideration of A$25 million (US$19 million).

The assets being sold consist of 'greenfield' nickel exploration tenement interests located in the Forrestania region of Western Australia. The divestment of these assets is in line with LionOre's corporate direction, announced during the fourth quarter 2005, which is focused on becoming a vertically integrated nickel producer. The sale of the assets is the result of a review undertaken to maximize value from these non-strategic nickel tenements.

The sale transaction is conditional on due receipt of normal regulatory consents and the consent of LionOre's Australian financiers.

In addition to the cash consideration, LionOre will be granted a right to toll treat, process and purchase on commercial terms nickel bearing material derived from the assets being sold and a marketing fee of 1% of any nickel or nickel product derived from the assets being sold.

For further information, please visit www.lionore.com.

Contact Information

  • LionOre Mining
    UK / Europe
    Colin Steyn, President & CEO
    +44 (0)20 7590 8888
    or
    LionOre Mining
    Canada
    Ted Mayers, Chief Financial Officer
    (416) 777-1670
    or
    LionOre Australia
    Australia
    Bryan Hyde, Chairman
    +61 (0)8 9426 0100
    Website: www.lionore.com