Petaquilla Minerals Ltd.
TSX : PTQ
OTC Bulletin Board : PTQMF
FRANKFURT : P7Z

Petaquilla Minerals Ltd.

May 21, 2009 00:05 ET

PTQ Board of Directors Approves Spin-Out of Petaquilla Infraestructura Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 21, 2009) - Petaquilla Minerals Ltd. ("PTQ") (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) intends to distribute to its shareholders one share of Petaquilla Infraestructura Ltd. ("PQI") for each four shares of PTQ held on the record date for the distribution. It is contemplated that the distribution of the PQI shares will be effected by way of a plan of arrangement (the "Arrangement") or some other tax-efficient mechanism. The transaction is subject to all requisite shareholder and regulatory approvals, and is expected to complete in the third quarter of 2009.

PQI is a British Virgin Islands corporation that was incorporated for the purpose of overseeing the construction, operation and management of infrastructure facilities required for the development of the Petaquilla Mining District in Panama. Its activities are organized around three development axes, corresponding to a portfolio of projects currently in progress:

Construction

- Roads and Infrastructure

- Housing Products

- Water treatment facilities

Power

- Generation (thermal and hydro)

- Transmission

Mining Services

- Heavy Equipment Fleet Management

- Mining and Blasting

- Mine and Civil Construction

- Laboratory Services

- Environmental Controls

- Security

PQI is pleased to announce a private placement subscription of two million (2,000,000) shares at CAD $1.00 arranged through its agent in New York. After the closing of the private placement, PQI will have 52 million shares issued and outstanding and CAD $2 million in the treasury, less commission and fees associated with the private placement. After the closing of the private placement and the completion of the Arrangement, PTQ will retain between 12% and 23% of the issued shares of PQI and the shareholders of PTQ will hold between 47% and 58% of the issued shares of PQI depending on the number of warrants and options that get exercised prior to the record date.

PTQ also announces the sale of 28% of its wholly-owned subsidiary PQI.

About Petaquilla Minerals Ltd. - Petaquilla Minerals Ltd. is an emerging gold producer that recently commissioned the operation at its 100% owned Molejon Gold Project. Full commercial production is expected to occur in the second half of 2009. Anticipated throughput for the project during the first year of production will be 2200 tonnes per day. The plant will utilize three ball mills and a carbon-in-pulp processing facility.

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

Richard Fifer, President and Chief Executive Officer

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

Contact Information

  • Petaquilla Minerals Ltd.
    Richard Fifer
    President and Chief Executive Officer
    (604) 694-0021 or Toll free: 1-877-694-0021
    (604) 694-0063 (FAX)
    www.petaquilla.com