Petaquilla Copper Ltd.
TSX : PTC

Petaquilla Copper Ltd.

July 07, 2008 22:00 ET

Petaquilla Copper Ltd. Enters Memorandum of Understanding With Isagen

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) - Petaquilla Copper Ltd. ("Petaquilla") (TSX:PTC) today announced it has entered into a Memorandum of Understanding ("MOU") with Isagen S.A E.S.P. ("Isagen") for the study of a power project on the Petaquilla mining concession in central Panama. Isagen is a Colombian mixed public utility corporation affiliated with the Ministry of Mining and Energy of Colombia. It is currently the third largest Colombian power company and its main corporate objectives are electric energy generation and commercialization, commercialization of natural gas by networks, and commercialization of coal, steam, and other energetics for industrial use.

The MOU defines the terms under which the partners, Petaquilla and Isagen, will advance feasibility studies covering all aspects of the development, structural design, construction, operation and maintenance of a power production facility intended to cover the energy needs of the mining projects on the Petaquilla concession and the commercial sale of excess power into the Panamanian and Central American grids.

In addition, all fuel sources will be evaluated and the necessary technical, environmental, commercial, financial and legal studies completed along with analyses of transportation of fuel and connectivity issues. Based on the technical, environmental and legal feasibility of establishing a power production plant, both parties will decide together how the project shall proceed.

Following the initial feasibility study, the parties agreed to form a new joint venture company owned 51% by Isagen and 49% by Petaquilla, for the construction and operation of the power plant.

The Petaquilla concession includes a gold mining operation owned 100% by Petaquilla Minerals Ltd. (TSX:PTQ) with an estimated 2200 tonnes per day mill scheduled to begin production by year end and a future copper mine with an estimated 120,000 tonnes per day throughput. The copper mine is a joint venture between Petaquilla Copper Ltd., Inmet Mining Corporation and Teck Cominco Limited and the copper project is nearing completion of a bankable feasibility study. The previous bankable feasibility study completed in 1998, and, hence, non-National Instrument 43-101 compliant, by H. A. Simons Ltd. (later acquired by AMEC Americas Limited), outlined a massive porphyry deposit hosting 1.115 billion tonnes grading 0.50% copper, 0.09 g/t gold, 0.155% molybdenum as well as recoverable silver. The resources occur in three project areas: Botija, Petaquilla, and Valle Grande with minimum recoverable payable metal content contained in these reserves of 9.4 billion pounds of copper, 1.37 million ounces of gold, 24.1 million ounces of silver, and 131.1 million pounds of molybdenum, not including the contained metal in the low grade stockpile.

Forward looking information - The statements contained in this news release that are not purely historical are forward-looking statements. Forward-looking statements may relate to the success of any of the Company's strategic initiatives, the Company's expectations, beliefs, growth and future prospects, and the Company's position in the market and future opportunities therein. Forward-looking statements may also include, without limitation, any express or implied statement relating to future events, industry performance, general business and economic conditions or circumstances, regulatory and legal requirements, and other matters, many of which are beyond the control of the Petaquilla. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. All forward- looking statements included in this news release are based upon information available to the Petaquilla as of the date hereof and Petaquilla does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change. You should not place undue reliance on forward-looking statements.

About Petaquilla Copper Ltd. - Petaquilla Copper Ltd. is a resource development company headquartered in Vancouver, Canada. Its shares are listed on the Toronto Stock Exchange under the symbol PTC.

On behalf of the Board of Directors of PETAQUILLA COPPER LTD.

John Cook, President and Director

No stock exchange has approved or disapproved the information contained herein.

Contact Information

  • Petaquilla Copper Ltd.
    John Cook
    President and Director
    (604) 694-0021 or Toll Free: 1-877-694-0021
    (604) 694-0063 (FAX)
    Website: www.petaquillacopper.com