QRES Q Resources

TIDMQRES

RNS Number : 6184J

Q Resources Plc

01 July 2011

01 07 2011

Q Resources announces extension of exclusivity period for MCP project

Q Resources Plc ("QRES" or the "Company") announces today that it has agreed an extension to the exclusivity period in which it will continue with its due diligence in relation to the potential purchase of the Montecristo Copper Mine and the Santo Domingo processing plant (together the "Montecristo Copper Project" or "MCP"). The exclusivity period will now conclude on 31 October 2011. Accordingly, trading in the Company's shares will continue to be suspended from trading on AIM until the Company is able to announce full details of the MCP acquisition and publish an admission document, as required under Rule 14 of the AIM Rules for Companies.

On 12(th) April 2011, the Company announced that it had entered into a Memorandum of Understanding, which included a 12 week exclusivity undertaking (together the "MOU") with HPC Maria Ltd, a wholly-owned subsidiary of Pentagon Bernini Fund Ltd, Gottex ABL (Cayman) Limited, and Antofagasta LLC, a fully owned subsidiary of Quantek Master Fund, SPC (together "the Vendors"), in relation to MCP.

The Company and the Vendors have both agreed that further time will be required to complete negotiations, due diligence and documentation associated with the potential acquisition.

The terms of the MOU, which covered the potential acquisition of mining licenses and all mining assets of the MCP for a consideration of US$110m (the "Potential Transaction") remain in place. The consideration will be satisfied by the issue of new ordinary shares in the Company and the issue of loan notes in the Company to the Vendors. Simultaneous with the completion of the Potential Transaction, it remains the Company's intention to raise approximately US$110m, net of expenses, from a placing of new ordinary shares.

Commenting on the announcement, Bernie Pryor, CEO of Q Resources, said;

"The Company's management team has spent a considerable amount of time evaluating this project. This confirms that the MCP remains a very exciting prospect. The extended period of negotiation and due-diligence, which is not without precedent in the mining industry, will allow the Company to ensure that the fundamentals, which we highlighted in April 2011, remain in place. At this time, we are confident that, upon completion, the MCP will bring clear and immediate financial benefits to Q Resources."

For further information contact:

Smithfield Consultants Limited

Scott Fulton / John Kiely

+44 (0)20 7360 4900

Notes to Editors

About Q Resources

Q Resources is a Jersey public limited company which has been established for the purpose of identifying and acquiring, or making investments in natural resources assets. The Company's strategy is to take advantage of opportunities to acquire assets that need capital and possess potentially valuable resources and operations with an initial focus on Africa and South America.

About MCP

MCP operated as a copper mine for 11 years until 2008, at which point the mine was placed on care and maintenance as a result of the global financial crisis. An exploration programme in 2008 provided a resource estimate and a project design for the production of 10,000 tonnes per annum of copper in concentrate, and approximately 0.5 million tonnes of iron ore concentrate per annum at 68% Fe. The underground mine design comprises open stope mining with ore requiring conventional crushing, milling, flotation, and magnetic separation prior to delivery to the market. The existing Santo Domingo process plant would be acquired from the Vendors and comprises the substantial part of the required operating facilities. A dedicated small port will be required to be built to export the iron-ore concentrate.

AIM Rule 14

The Company notes that the Potential Transaction as contemplated would constitute a reverse takeover under the AIM Rules for Companies and will require the publication of an admission document in respect of the Company as enlarged by the acquisition of MCP and the consent of the Company's shareholders in a general meeting.

The Company is not currently in a position to comply with the requirements of Rule 14, insofar as publication of an admission document and convening of a general meeting are concerned. Consequently, the Company's shares will remain suspended from trading on AIM until such time as the Company is able to publish an admission document or the Potential Transaction is no longer in contemplation.

For further information please visit www.qresourcesplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

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