Petaquilla Infrastructure Subsidiary Awarded Contract
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/06/11 -- Petaquilla Minerals Ltd. (the 'Company' or 'Petaquilla') (TSX: PTQ)(OTCBB: PTQMF)(FRANKFURT: P7Z) is pleased to announce that its infrastructure subsidiary, Panama Desarrollo de Infraestructuras, S.A. ('PDI Panama'), in a joint venture with Constructora MECO, has been awarded a contract by Minera Panama, S.A. ('MPSA'), a wholly owned subsidiary of Inmet Mining Corporation, to construct a 3.9 kilometre road. The road will bypass the Company's Molejon gold mine and, thus, provide MPSA with direct access to their copper project in the District of Donoso, Colon Province, Panama.
The joint venture between PDI Panama and Constructora MECO, one of Costa Rica's leading infrastructure development companies, is part of a previously defined strategy to develop alliances designed to take competitive advantage of PDI Panama's construction experience in the Petaquilla Mining District and its access to aggregate material at Molejon.
To further develop its business in Panama, PDI Panama has identified numerous opportunities including the development of mini hydro (i.e. run of river) plants, the construction of heap leach pads and roads as well as the manufacturing and sale of construction materials. To this effect, PDI Panama has entered into a contract to sell 1.8 million cubic metres of construction aggregate within the next five years to a Panamanian construction company and is in the process of evaluating other agreements with a combined value of approximately US$72 million.
By the end of the first quarter of Fiscal 2012, the Company intends to present a Plan of Arrangement, or some other tax favourable mechanism, for approval by the Toronto Stock Exchange and subsequent submission to Petaquilla's shareholders, to spin out the infrastructure arm of the Company. The exchange ratio for the proposed future spin-out, as previously announced, will be one (1) share of PDI for every four (4) shares of Petaquilla.
About Petaquilla Minerals Ltd. Petaquilla Minerals Ltd. is a gold producer operating its gold processing plant at its 100% owned Molejon Gold Project in Panama. The Molejon mine site is located in the south central area of the Company's 100% owned 842 square kilometre concession lands, a region known historically for gold content.
On behalf of the Board of Directors of PETAQUILLA MINERALS LTD.
Joao C. Manuel, Chief Executive Officer
No stock exchange has approved or disapproved the information contained herein.
Contacts:
Petaquilla Minerals Ltd.
Joao C. Manuel
Chief Executive Officer
(604) 694-0021 or Toll Free: 1-877-694-0021
(604) 694-0063 (FAX)
www.petaquilla.com