MMX Mineração e Metálicos S.A. Announces New Business Opportunity in Chile
| Source: MMX Mineracao e Metalicos S.A.
RIO DE JANEIRO, BRAZIL--(Marketwire - November 5, 2008) - MMX Mineração e Metálicos S.A.
("MMX" or the "Company") (BOVESPA: MMXM3) (TSX : XMM ), pursuant to article
157 of Law 6404/76, and CVM Instruction No. 358/02, hereby makes the
following announcement:
Minera MMX de Chile, a wholly-owned subsidiary of MMX, has concluded (i)
the acquisition of two mining rights in which the Company has identified
promising iron ore deposits and (ii) two Option Agreements whereby MMX will
be entitled to purchase other neighboring mining rights for the exploration
of iron ore (altogether the "Mining Rights"). Located within a 90km-radius
from the city of Copiapó, in the North of Chile, the Mining Rights totalize
an area of approximately 1,760 hectares and are on average 50km distant
from the Chilean coast with access to natural deep water drafts.
The total purchase price of the Mining Rights, if the options are
exercised, may reach USD 53.5 million. Of this amount, USD 26 million have
been paid and the remaining amount will be disbursed in installments until
the end of the exploration campaign.
Geological mapping and environmental licensing for the drilling campaign
are already in progress, and a 2-year drilling campaign is expected to
begin in the first quarter of 2009, with an estimated exploratory budget of
approximately USD 17 million.
Based on MMX's knowledge of the regional geology and published technical
studies, MMX believes that the geological potential of the Mining Rights
may present an attractive opportunity for a new iron ore System, with
significant volumes and favorable logistics.
For more information, please contact ri@mmx.com.br