Petaquilla Minerals Ltd.
OTC Bulletin Board : PTQMF

Petaquilla Minerals Ltd.

September 26, 2005 09:02 ET

Panamanian Government Approves Petaquilla Mine Plan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 26, 2005) - Petaquilla Minerals Ltd. ("PTQ" or the "Company") (TSX:PTQ)(OTCBB:PTQMF) is pleased to announce that the Government of Panama has approved, by Ministerial Resolution, the multi-phase mine development plan (the "Plan") presented by the Company and its partners: Teck Cominco ("Teck") and Inmet Mining ("Inmet")

Acceptance of the plan initiates the terms of Ley Petaquilla (a contract law passed by the Panamanian Government in 1997 setting out the terms governing the development of Petaquilla's mining concessions).

The main features of Ley Petaquilla are as follows:

- A stable land tenure - the term of the agreement is 20 years, with two options to renew for another 20 years each, for a total of 60 years.

- A favorable tax regime

1. Accelerated depreciation and depletion allowance.

2. Practically all supplies and equipment required by the project are exempt from import duties.

3. Exemption from all income taxes (except the mineral production royalty) until the retirement of all construction financing.

4. Tax will not be withheld on interest payments to foreign lenders or dividends to foreign shareholders.

- Future changes in legislation that are inconsistent with Ley Petaquilla will not apply to the Owners.

The first phase in the Plan is the development of the Molejon Gold Deposit by PTQ commencing in 2006. The development of the world-class Petaquilla copper deposit is included in subsequent phases of the Plan, and will be the responsibility of Minera Petaquilla S.A., the joint venture company owned by PTQ, Teck and Inmet.

Further information on the Ministerial Resolution, Ley Petaquilla and the multi-phase Petaquilla Development Plan can be obtained on SEDAR (

On behalf of the Board of Directors of

"Michael Levy"

Michael Levy, President and Director


Contact Information

  • Petaquilla Minerals Ltd.
    Michael Levy
    President and Director
    (604) 694-0021
    (604) 694-0063 (FAX)