Petaquilla Minerals Ltd.
OTC Bulletin Board : PTQMF

Petaquilla Minerals Ltd.

October 13, 2006 03:05 ET

Petaquilla Minerals Ltd.: Update of Company Activities

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 13, 2006) - Further to the Company's news release of October 12, 2006, Michael Levy, President of Petaquilla Minerals Ltd. ("PTQ" or the "Company") (TSX:PTQ)(OTCBB:PTQMF)(FWB:P7Z), is pleased to provide the Company's shareholders with an update of the Company's plans following the completion of the Company's Plan of Arrangement on October 18, 2006.

Immediately following the Arrangement becoming effective, PTQ will own 20% of the issued shares of Petaquilla Copper Ltd. ("Copper"), the company which will then own the Company's interest in the Petaquilla Copper Project. In this manner, shareholders of PTQ will continue to participate in the development of both the Molejon Gold Project and also the Petaquilla Copper Project. PTQ will continue to exercise leadership in the development of the world-class Petaquilla Mineral District.

With the formation of Copper, PTQ has created an excellent economic opportunity for its shareholders. Through the creation of a single corporate entity, Copper, corporate development can continue with the goal of enabling the copper asset to be fully valued.

The Company will use $17,560,000 of the private placement proceeds to advance the Company's gold assets in the Republic of Panama and to pay expenses relating to the private placement. $5,000,000 of the private placement proceeds will be used for the benefit of Copper.

The Company owns 100% of the Molejon Gold Project ("Molejon") in the Petaquilla Mineral District. Molejon contains an inferred resource of 11.2 million tones grading 2.48 g/t for total contained gold of 893,000 ounces according to SRK Consulting's updated report in October 2005. In addition, PTQ continues to own 100% of the 639 square kilometres surrounding the gold and copper projects.

The Company also has ongoing joint ventures with Gold Dragon Capital Management Ltd. with respect to the Rio Belencillo and Rio Petaquilla concessions in Panama and with Eurogold Mining Inc., for the exploration and development of the San Juan Property, which is adjacent to the Company's Molejon Gold Project.

Furthermore, the Company's Board of Directors has recently authorized the creation of Petaquilla Power and Water, S.A., a company to be responsible for managing both the energy needs of the mining industry in the region and the regional water system.

As previously announced, Petaquilla Copper Ltd. intends after the effective date of the Arrangement (please refer to the Company's news release dated October 12, 2006) to conduct a non-brokered private placement, subject to any applicable regulatory approval, of 20,000,000 Units at a price of $2.00 per Unit for gross proceeds of $40,000,000 (the "Follow-On Offering"). Each Unit will consist of one common share and one-half of one share purchase warrant, where each full warrant entitles the holder to purchase an additional common share of Copper for a period of five years at a price of $3.50 per share. The securities purchased under the Follow-On Offering will be subject to a hold period expiring four months and one day from the closing. The proceeds of this Follow-On Offering will be used in the development of the long lead time infrastructure of the Petaquilla Copper Project. Details regarding the Follow-On Offering can be found in the Company's news releases dated July 20, 2006, and August 31, 2006.

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 Company. 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 Company as of the date hereof and the Company does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change.

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

Michael Levy, President and Director

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

Contact Information

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