EMED Mining Public Limited (“EMED Mining” or “the Company”), the Europe-based minerals development and exploration company, is pleased to announce that the Company and one of its subsidiaries have entered into conditional agreements with a cornerstone customer Yanggu Xiangguang Copper Co. Ltd ("XGC") for an aggregate funding package of US$30 million (intended as to half in the form of share capital and half in the form of a future standby debt facility) in exchange for a 10% ordinary equity position in EMED Mining (on a fully-diluted basis) and the grant of limited off-take rights over the Rio Tinto Mine's copper production.

Highlights of transaction with XGC

• XGC to provide $15 million equity by way of a subscription for new ordinary shares in the Company at a price of 9 pence per share (or approximately US$0.14) (the "Subscription").
• XGC to conditionally agree to provide or arrange a $15 million subordinated debt facility as required by the providers of senior debt finance (who will be providing the senior debt for the purposes of the restart of operations of the Rio Tinto Mine) (the "Cost Overrun Support").
• The Company's subsidiary, EMED Marketing Limited ("EMED Marketing") has granted XGC off-take rights over 25% of current reported copper reserves, at market prices.
• XGC would complement the existing strong international shareholder base dominated by European,North American and Australian shareholders.

Further information on the transaction with XGC and the related agreements between the parties are set out below.

Highlights of Concurrent Activities

• The Company is also in advanced discussions with potential project financiers with a view to finalising  amandate in respect of the provision of project debt of $175 million.
• The agreements with XGC together with the project finance negotiations represent part of the planned finance, hedging, bonding and insurance package for the start-up funding of the Rio Tinto Mine, subject to a number of conditions including Spanish regulatory approvals and shareholder approval.
• Discussions continue with the regulatory authorities in Andalucia, Spain on the various permits required to start project works at the end of 2012 and production to start in 2013. As part of the project preparations, EMED Mining has ensured that the Andalucian Government has also met most of the Company’s carefully assembled set of large shareholders including XGC.

In relation to the potential mandate to project financiers, the Company is in advanced detailed discussions with a number of leading global financial institutions and a further announcement is expected to be made on this in due course. The quantum of $175 million caters for previously reported project capital estimates supplemented by contingency provisions for the expanded land footprint agreed with the Andalucian Government, anticipated revisions in equipment specifications or prices, foreign exchange movements and working capital buffers. A detailed break-down will be updated and reported in due course when the conditions of regulatory permitting are confirmed and detailed engineering and procurement can be finalised.

As regards the regulatory permitting of our plans for the Rio Tinto Mine, the Company is in frequent and intense discussions with the Andalucían Government, which has also referred some of the project documentation for review by the peak national technical review agencies as part of their approval processes.

Harry Anagnostaras-Adams, the Managing Director of EMED Mining said, “Progress continues on the key business plan tasks for the quarter and the Company’s finance plans head in the previously reported targeted direction.

“The financing and off-take arrangements announced today reflect our long-stated commitment to build the highest-quality links for a small portion of our production into China, the key driver of global demand for our product, and to do so via an alliance with leading Chinese metal processor XGC is especially pleasing.

“This complements our overall product strategy wherein most of our production is expected to be delivered for copper production use in Spain and other European smelters, with whom we have also established appropriate dialogue”.

.....the announcement continues. Read the entire announcement "Proposed Subscription, Cost Overrun Support and Off-take Arrangements with Cornerstone Customer" (53,4KB pdf)