Weda Bay Minerals Inc. and OM Group Inc. Reach Agreement.
E[acute accent]The terms of this agreement are that WDA will advance to OMG an initial loan repayment of US$2.5 million on or before September 30, 2005. On completion of Project Finance, WDA may elect to either pay OMG US$20 million or an Annual Payment equivalent to 1% of the net smelter revenue for 30 years of project life. The completion by WDA of either option will result in the full and final repayment of the balance of the outstanding loan to OMG inclusive of accrued interest.
E[acute accent]All other agreements between the Companies, including the PSA, will terminate as of the date the initial payment is made by WDA. OMG and the Directors and officers of WDA have agreed to retain their shareholding in WDA for a period of 18 months unless mutually agreed otherwise.
E[acute accent]Mr. Michael Garvey, Chairman of the Board of Directors, states "This is an extremely positive development for Weda Bay Minerals as it allows the Company to aggressively advance the outstanding Halmahera nickel cobalt project toward a Bankable Feasibility Study and Project Finance. The Company can now negotiate with other interested parties the rights to production from the Company's project. The termination of all the agreements with OMG will allow the Company to partner substantial companies interested in investing in the nickel and cobalt industry. We are expecting very positive further developments in the coming months."
E[acute accent]Weda Bay Minerals Inc (WDA) is an exploration and development company focused on the world-class nickel and cobalt laterite project on the island of Halmahera in Indonesia. The project resources are 155 million tonnes grading 1.45% Ni and 0.09% Co of measured and indicated resources plus 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni.
E[acute accent]The Company has completed an independent Pre Feasibility Study, which concludes that the Halmahera project is highly viable. The Company is now working towards the commencement of a Bankable Feasibility Study.
E[acute accent]WEDA BAY MINERALS INC.
E[acute accent]R. MICHAEL GARVEY
E[acute accent]CHAIRMAN OF THE BOARD OF DIRECTORS
E[acute accent]The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
E[acute accent]WEDA BAY MINERALS INC. (TSX:WDA)