TCU Toledo Copper

RNS Number:1385A
Toledo Copper Corporation PLC
25 June 2004

                         Toledo Copper Corporation plc

                      Option to acquire Toledo copper mine



As envisaged in its AIM admission document dated 2 April 2004, Toledo Copper
Corporation plc ("TCC") has entered into an agreement with Atlas Consolidated
Mining & Development Corporation ("Atlas"), a company quoted on the Philippines
Stock Exchange, under which it has the option to acquire a 40 per cent. interest
in the Toledo copper assets currently owned by Atlas. In order to earn the full
amount of the interest, TCC will have to make payments and loans up to US$ 28
million to fund in part the development of the Toledo copper mine, including
final feasibility work, the equity component of the project funding and other
related costs.



A feasibility study of the rehabilitation and re-opening of the mine is close to
completion and is currently being audited by independent consultants Behre
Dolbear Australia Limited. The study is based on a mine throughput of 42,000
tons of ore per day which, over an 11 year period, is estimated to produce on
average 100 million pounds of copper and 45,000 ounces of gold per annum from
underground block caving operations.



The Directors will assess the conclusions of this study in deciding whether to
exercise the option. The Company is currently in a selection process with a
number of financial advisers and institutions with a view to agreeing the most
appropriate funding mix of debt and equity to optimise returns to TCC
shareholders. This will include the issue of further equity in TCC.



Chris Kyriakou, Chairman of TCC, commented:



"We hope soon to announce the appointment of a project finance adviser to
achieve a beneficial financial package. Early indications from Japanese and
Chinese smelters greatly encourage the Board as this exciting project develops."



25 June, 2004



Enquiries



Chris Kyriakou, Chairman

Tel: 0870 010 6044



Notes to Editors



The Toledo copper mining and processing operations are located in the Barrio
Biga, Toledo City on the island of Cebu. The site is approximately 450 metres
above sea level, 50 kilometres by road from the capital of Cebu City and 17
kilometres by road from the port at Toledo City.



Over 39 years three major open pit operations have been carried out and two
underground block-caving lifts have been mined at Toledo. Atlas has mined a
total of 667 million tons of ore at Toledo producing concentrates containing
approximately 2.56 million tons of copper, 1.96 million ounces of gold and 7.2
million ounces of silver. Current resources are in the order of 874 million tons
at 0.41 per cent. copper, with potential for discovery of substantially richer
grade ore in the tenements surrounding the Carmen and Lutopan mines.



The development of the Carmen first lift block-cave was in progress and already
producing 10,000 metric tons per day when operations were interrupted by floods
in December 1993, causing suspension of mining operations to the present day. At
the peak of production, in the period between 1979 and 1984, Atlas was mining at
a rate of 103,000 tons per day of ore with three separate concentrators in
operation.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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