Penmont not intending to revi

RNS Number : 3014F

Fresnillo PLC

11 January 2010

 

Fresnillo plc

11 January 2010

Penmont announces it has no intention to revise Canplats proposal

London, Mexico City; January 11, 2010  -  Fresnillo plc announces that  Minera  Penmont S. de R. L. de C.V. (Penmont), its 56% owned joint venture with Newmont Mining Corporation (44%), has decided to take no further action regarding its proposal to acquire the outstanding common shares of Canplats Resources Corporation (Canplats) and has advised the Canplats board accordingly.

Penmont notes that the board of Canplats has resolved that Penmont's revised proposal no longer constitutes a "superior proposal" for the purposes of the Goldcorp Agreement and has therefore resolved to recommend that shareholders vote in favour of the amended agreement with Goldcorp.

After considering its position, Penmont has determined that it would not be in the best interests of its shareholders to revise its proposal. Therefore Penmont announces that it has no intention of submitting any further proposal to the board of Canplats.

Penmont's financial advisor is Scotia Capital and its legal advisors are Goodmans LLP in Canada and Wachtell, Lipton, Rosen & Katz in the United States.

ENDS

For further information, contact:

Fresnillo plc

London Office Tel: [phone]

Octavio Alvidrez, Head of Investor Relations

Mexico City Office

Gabriela Mayor Tel: [phone]

Brunswick Tel: [phone]

Carole Cable

David Litterick

About Fresnillo plc

Fresnillo Plc is the world's largest primary silver producer and Mexico's second largest gold producer, listed on the London Stock Exchange under the symbol FRES.

Fresnillo has three producing mines, all of them in Mexico - Fresnillo, Ciénega and Herradura; two development projects - Saucito, Soledad & Dipolos; and three exploration prospects - San Juan, San Julian, Orysivo, as well as a number of other long term exploration prospects and, in total, has mining concessions covering approximately 1.75 million hectares in Mexico.

Fresnillo has a strong and long tradition of mining, a proven track record of mining development and reserves replacement, and a low cost of production, being in the lowest quartile of the cost curve for both silver and gold.

Fresnillo intends to maintain its position as the world's largest primary silver producer with the aim of approximately doubling production, on a silver equivalent ounce basis by 2018 and increasing its gold production.

 

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