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METALL MINING CORPORATION PURCHASES ASSETS OF CONTROLLING SHAREHOLDER

 TORONTO, Sept. 30 /PRNewswire/ -- Dr. Klaus M. Zeitler, president and chief executive officer, announced that Metall Mining Corporation (MMC) has today purchased from its controlling shareholder Metallgesellschaft AG (MGAG) certain copper smelting and refining assets, consisting of a 35 percent interest in Norddeutsche Affinerie AG in Hamburg, a 40.35 percent interest in Montanwerke Brixlegg Ges.mbH in Brixlegg, Austria, and an option to acquire a controlling interest in the proposed Gresik copper smelter project in Indonesia. The aggregate purchase price is $171 million and, subject to regulatory approval, will be payable in full by the issue to MGAG of 15,906,977 common shares of MMC at a price of $10.75 per share.
 As part of its consideration of the acquisition of the assets and the proposed issuance of common shares to MGAG, the board of directors of MMC appointed a special committee comprised of members of the board who are independent of MGAG. The special committee has recommended the transaction, relying in part on an opinion of NM Rothschild & Sons Limited of London, England and Rothschild Canada Limited of Toronto, Canada to the effect that the transaction is fair from a financial point of view to minority shareholders of MMC.
 In view of current adverse market conditions for base metal stocks, MGAG and MMC have elected not to proceed with a proposed primary and secondary offering of common shares of MMC, for which a preliminary prospectus was filed on Sept. 22, 1993.
 MGAG is the principal shareholder of MMC, currently holding indirectly approximately 60.5 percent of the outstanding common shares of MMC. Upon the closing of the transaction, it is expected that MGAG's indirect interest in MMC will increase to approximately 68 percent of the outstanding common shares of MMC.
 Dr. Zeitler said: "This strategic acquisition will strengthen MMC and increase its ability to withstand declining metal prices." Dr. Heinz Schimmelbusch, chairman of MGAG, said, "MGAG expects MMC to grow to be a key player in the international copper markets."
 -0- 9/30/93
 /CONTACT: Dr. Klaus Zeitler, president and chief executive officer of Metall Mining Corporation, 416-361-6400/


CO: Metall Mining Corporation; Metallgesellschaft AG; Norddeutsche Affinerie AG ST: Ontario IN: MNG SU: TNM

WB -- NY042 -- 7243 09/30/93 11:38 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
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