Quadra Mining Ltd.

Quadra Mining Ltd.

March 30, 2007 03:00 ET

Quadra Mining Announces a Takeover Offer for International Molybdenum Plc

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2007) - Quadra Mining Ltd. ("Quadra" or "Company") (TSX:QUA) today announces its intention to make an offer (the "Offer") to acquire all of the issued and to be issued share capital (the "InterMoly Shares") and traded warrants (the "InterMoly Warrants") of International Molybdenum Plc ("InterMoly") AIM:IMY.

- The Offer is based on InterMoly shareholders receiving 1 Quadra share for each 36.22 InterMoly shares and InterMoly warrant holders receiving 1 Quadra share for each 99.23 InterMoly warrants. The Offer values the combined shares and warrants of InterMoly at CDN $34,446,892 based on the price of Quadra shares at market close on March 28th 2007 of CDN$8.79 or 10.68 pence per InterMoly share and 3.90 pence per InterMoly warrant. This represents a premium of 77.9% over the share price on March 6th 2007, the last trading day prior to the increase in the InterMoly share price which led to the announcement by InterMoly on March 8th, 2007 that it was in preliminary discussions concerning a possible offer for InterMoly.

- An irrevocable undertaking to accept the Offers has been received from Galahad Gold plc ("Galahad") in respect of 106,666,700 InterMoly Shares and 3,333,350 InterMoly Warrants, representing approximately 78% of the InterMoly Shares and 25% of the InterMoly Warrants. This irrevocable undertaking will continue to be binding even in the event of a competing offer being made for InterMoly.

The InterMoly Directors consider the terms of the Offers to be fair and reasonable and have agreed to recommend the Offers to holders of InterMoly Shares and InterMoly Warrants.

InterMoly is the owner of the Malmjberg molybdenum project in Greenland, which based on a technical report prepared for InterMoly has a NI 43-101 compliant resource of 212 million tonnes at 0.12% Mo making it one of the more significant, high grade advanced stage primary molybdenum projects.

Paul Blythe, President and CEO, said, "We see the Malmjberg project as a good fit in our strategic plan of becoming a multi-asset base metals producer. It is a significant advanced stage primary molybdenum project, having already been drilled off by InterMoly to the point where a substantial resource base has been defined. Quadra's skill sets are the financing, development and operation of base metals projects and if we are successful in our acquisition, we see these as being immediately applicable to moving the Malmjberg project forward. The acquisition would provide exposure to what we anticipate will be a strong molybdenum market going forward and would be part of Quadra's strategy of changing the company's profile through commodity and geographical diversification."

In addition to a Measured and Indicated resource containing 560 million pounds of molybdenum, the technical report prepared for InterMoly identifies the development of an open pit mine that would operate 365 days per year at a scale of 25,000 tonnes per day mill feed. Processing of the ore would be by standard flotation procedures and approximately 15,000 to 20,000 tonnes of molybdenite concentrate is expected to be produced per annum.

Quadra will prepare and mail to all International Molybdenum shareholders and warrant holders an Offer Document describing the terms of the Offer. The Offer is subject to a number of conditions including: (a) acceptance of the Offer by holders of not less than 90% of the holders of shares and warrants of InterMoly; (b) approval by the TSX of the issuance of the shares issuable by Quadra in connection with the Offer; (c) the Greenland Home Rule Government having approved the indirect transfer to Quadra of the principal license issued in connection with the project in form and substance satisfactory to Quadra, and other conditions typical for a transaction of this nature. The conditions to the Offer will be further described in the Offer Document, copies of which, together with other related documents, will be filed on SEDAR and available on the Company's website.

Standard Bank plc is acting as financial advisor to Quadra.

Senior Management will host a webcast / conference call regarding this transaction on Friday March 30th at 11.30am EDT (8.30am PDT).

The North American toll free number for this conference call is 1-800-769-8320 while the international number is 1-416-695-9719. To access the simultaneous webcast and slide presentation, visit Quadra's website at www.quadramining.com or www.InvestorCalendar.com. The playback version of the call will be available until April 6th, 2007 at 1-416-695-5275 or North American toll free 1-888-509-0081.


Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal asset is the Robinson Mine in Nevada. The Company has a goal of becoming a mid-tier base metals development and operating company with interests in a number of advanced exploration, development and producing properties.

This Press Release contains "forward-looking statements" concerning Quadra and includes, among other things, statements concerning the Malmbjerg Project that is based on InterMoly's published expectations, estimates and projections, including information with respect to the future production of the Malmbjerg Project which Quadra has not independently established or verified or assessed the assumptions underlying it. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to:

- Uncertainties related to the accuracy of the resource estimates at the Malmbjerg Project and the geotechnical and density factors and diminishing quantities or grades of reserves.

- Uncertainties related to expected mining production rates, timing of production and the associated metal recoveries.

- Operating and technical difficulties in connection with mining development or production activities.

- Uncertainties relating to determining capital costs and operating costs of a mineral project.

- Uncertainties related to judicial or regulatory proceedings.

- Changes in, and the effects of, the laws, regulations and government policies affecting mining operations.

- Changes in general economic conditions, the financial markets and in the demand and market price for commodities, such as diesel fuel, petroleum, steel, concrete, electricity and other forms of energy, mining equipment, operating supplies, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Danish Krone.

- Environmental issues and liabilities associated with mining including processing and stock piling ore and spent ore.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Quadra disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise.

Contact Information

  • Quadra Mining Ltd.
    Paul Blythe
    President & CEO
    (705) 444-1316
    Website: www.quadramining.com
    Standard Bank Plc
    Thys Terblanche
    Head of Mining & Metals
    011 - 44 207 815 4303