RNS Number : 6324E
International Consolidated Min. Inc
30 September 2008
30 September 2008
International Consolidated Minerals Inc.
(*ICMI* or *the Company*)
INTERIM RESULTS ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
International Consolidated Minerals Inc. (AIM & BVL: ICMI), the South American focused mineral exploration and development company, is
pleased to announce its Interim Results for the six months ended 30 June 2008.
HIGHLIGHTS:
� The drilling programme started in 2007, and has to date delineated a potential resource of 52 million tonnes in addition to the known
JORC-standard reserves and resources
� The existing concentrator and other on site infrastructure refurbishment and upgrade is well under way to allow early production to
commence at the beginning of 2009
� The pre-feasibility study on the second concentrating plant has been completed and the preparation of the EIS for the new plant
construction commenced in July 2008
� CSFB has been retained as a financial adviser
� Successful completion of secondary listing on the Lima Stock Exchange
ICMI*s Chief Executive Officer, Greg Smith, commented:
*The interim results for the last six months provide further evidence that operations and drilling at our Pachapaqui project are well on
schedule in developing what we believe will be a world class mining property. Having rehabilitated the existing concentrator and
infrastructure, we are aiming to commence production in early 2009.*
Enquiries:
International Consolidated Minerals Inc.
Greg Smith Chairman, CEO Tel: +44 (0)20 7766 0085
Pawan Sharma Executive Vice President - Tel: +44 (0)20 7766 0085
Corporate Affairs
Strand Partners Limited (Nominated Adviser)
Simon Raggett Tel: +44 (0)20 7409 3494
Matthew Chandler Tel: +44 (0)20 7409 3494
Numis Securities (Joint Broker, London)
John Harrison Tel: + 44 (0)20 7260 1254
James Black Tel: + 44 (0)20 7260 1207
Fox-Davies Capital (Joint Broker, London)
Richard Hail Tel: +44 (0)20 7936 5200
Pelham Public Relations
Charles Vivian Tel: +44 (0)20 7743 6672
John McLeod Tel: +44 (0)20 7743 7442
ADDITIONAL INFORMATION ON INTERNATIONAL CONSOLIDATED MINERALS INC.
International Consolidated Minerals Inc. (AIM & BVL: ICMI), was formed in 2005 to pursue mineral exploration, development and production
with its initial attention on Latin America ICMI*s strategy is to focus on high-quality mining assets at an advanced stage of development.
In early 2006, ICMI acquired the Pachapaqui mining property in central Peru which contains appreciable high grade zinc, lead, copper, silver
and gold mineral reserves and resources. The property consists of 32 mining concessions of 2,105 hectares and one beneficiation concession
of 65 hectares on which is located mining infrastructure and equipment, hydro-electrical generating stations, offices and accommodations,
and concentrating plant facilities. In 2007, while conducting upgrades of the facilities, ICMI embarked on a drilling and exploration
geology programme, initially in one area on the Pachapaqui property, from which the Company has had tremendous success and is confident of
proving up significant additional mineral reserves and resources. The Company intends to bring the Pachapaqui Mine into production in 2009. Further information is available from the Company*s
website at: http://www.icmi-inc.com.
International Consolidated Minerals Inc.
Highlights & Achievements to date
For the six months ended 30 June 2008
International Consolidated Minerals Inc. (AIM and BVL: ICMI) is an independent exploration and development mining company focused on
operations and opportunities in Latin America with an initial focus on Peru.
International Consolidated Minerals Inc. (*ICMI* or the *Company*) owns and operates, through a wholly owned Peruvian subsidiary, 100 per
cent. of the Pachapaqui property, on which is situated the past-producing base metals (zinc, lead and copper) and precious metals (silver
and gold) mine located in the rich, well-known Central Mineral Belt of Peru.
The Pachapaqui property (the *Pachapaqui Property*, *Pachapaqui*) consists of 32 Peruvian Mining Concessions and one Beneficiation
Concession within a combined surface area of approximately 2,170 hectares, with JORC-standard reserves and resources. According to a
Competent Persons Report completed by CSA Consulting Limited in August 2007, the property has exceptional exploration potential for 70
million tonnes of reserves which would support a mine life of decades.
Exploratory diamond drilling commenced in 2007 and by mid-December 2007 at least 15 million additional tonnes of in-situ mineralisation had
been confirmed in the initial exploration focus area which constitutes only 0.3 per cent. of the total Pachapaqui Mining Concessions area.
This initial focus area is just one of several high potential prospects and discoveries made during 2007 on the Pachapaqui Property. Further
exploration activities to delineate additional mineral resources and reserves, which the Company is very confident exist, will continue on
the property.
Further exploratory drilling undertaken during 2008 to date has confirmed at least 20 million tonnes of potential indicated mineral
resources in the Mantos Zone, 2 million in the Amelia Veins, and 26 million in the Breccia Zone. With over 4 million tonnes of resources
indicated in other areas on the property, at least 52 million tonnes of potential resources are indicated on the property from the
exploration programme thus far, which are in addition to the known JORC-standard reserves and resources.
Earlier this year, the Company received approval for its environmental impact study (*EIS*) to operate the Pachapaqui Mine at 1,500 tonnes
per day (*tpd*), having already passed through the public consultation process and satisfactorily addressing all issues raised.
Sited on the Pachapaqui Property are existing mining and concentrating facilities which ICMI proposes to upgrade and bring into production
during early 2009, at a mill feed rate at the end of 2009 of 1,500 tpd producing three (zinc, lead and copper) concentrates containing
payable silver and gold. The Company also intends to begin the permitting process in 2008 for the construction of additional new facilities
with a proposed mill feed capacity of 6,700 tpd, increasing the eventual Pachapaqui mill feed production, by about mid-2012, to 8,200 tpd.
The Company has reorganised its corporate structure in Peru, and with effect from 1 March 2008, ICM Millotingo SAC and Concentradora
Pachapaqui SAC were merged into Andean Minerals Peru SAC. The Company has, since the period end, been admitted to trading in the risk
capital segment of the Bolsa de Valores de Lima (Lima Stock Exchange) on 27 August 2008.
Chairman & Chief Executive Officer*s and President & Chief Operating Officer*s Statement
For the six months ended 30 June 2008
We are delighted to present ICMI*s Interim Results for the six months ended 30 June 2008.
In line with our long term strategy of becoming a leading independent mining operator in Latin America, we remain focused on targeting and
developing advanced stage mining opportunities in the region. Peru*s economic success has been largely supported by the significant growth
of its mining industry which now accounts for more than half of Peru*s exports. Even so, Peru has tremendous largely untapped mineral
resources offering many more opportunities. In addition, Peru is a stable democracy with sophisticated mining laws, well developed
infrastructure, logistics and supplies support. Our initial focus is justifiably on Peru, and in particular, on our exciting polymetalic
Pachapaqui project.
Our Pachapaqui project is located in one of the world*s most prolific mining belts and hosts a major geological system. Prior to its
acquisition by ICMI, there had been practically no systematic exploration conducted on the property and therefore Pachapaqui*s potential was
not fully appreciated or even understood. In 2007, we commenced an aggressive exploration programme aimed at increasing Pachapaqui*s reserve
and resource base and the Company*s value. This programme has continued through 2008 to date and has been tremendously successful and has
resulted in the delineation of over 52 million additional tonnes of mostly thick-vein mineralisation in one zone occupying only
approximately 2 per cent. of the 2,170 hectare Pachapaqui property. Although no appreciable work has yet been performed on areas outside of
the Mantos and Breccia zones, from preliminary investigations the property is known to host very extensive skarns, a large breccia in a
collapsed caldera, Cu-Au mineralised areas, and a large porphyry system possibly underlain by a pluton, potentially totalling, it is believed, mineralisation in the order of hundreds of millions of tonnes.
The current exploration programme also aims to increase resources in other areas on the property.
With the understanding of the geology that we already have, we are planning to start production using the rehabilitated existing
concentrator and infrastructure in early 2009 aiming to quickly ramp up to 1,500 tpd by the end of the year. In addition, we commissioned a
pre-feasibility level study and design of an additional new 6,700 tpd concentrating plant, which was completed in August 2008, and we also
began the preparation of the required EIS in July 2008 for the new plant*s construction and operation. To facilitate an efficient production
start up in early 2009, we have completed preparation of the site and infrastructure, including the construction of accommodations, with
contractors and almost 150 employees now located at the mine site and in our Lima office.
Beyond the contemplated 8,200 tpd operation, expected to be in place by mid 2012 after permitting and construction, the potential of the
Pachapaqui Property is such that we believe that production can be reasonably expected to ultimately reach tens of thousands of metric
tonnes per day in the years and decades to come, most likely from several on-site plants. Pachapaqui*s growth prospects are tremendous, and
will require significant investment to be realised.
Following a review of the Group*s financial position and its budgets and plans, the directors have concluded that the Group will need to
raise additional finance in the near future.
To assist us in financing and funding our growth, the Company has retained Credit Suisse as advisor to support us in our financing and in
finding a suitable long term strategic partner who can bring, or assist in bringing in, the necessary financial and technical resources.
We expect to close a short term loan in the next week raising a total of $6m. These funds will finance working capital and a limited work
programme for the next three months. During this period we will continue to pursue a number of options to secure the longer term financing
required to develop the assets in accordance with our stated strategy. A number of these discussions are at an advanced stage, and we remain
confident that an appropriate transaction will be concluded in the next three months. Also, see note 1 of the interim condensed financial
statements.
Pachapaqui is an exciting project, with world class potential for a bright future, and management is diligently pursuing its growth. Our
objective is to maximise shareholder value, with careful planning recognising the conditions in which we operate, while at the same time
being a responsible corporate citizen in Peru and operating in an environmentally responsible manner.
On behalf of the Board of Directors, we would like to thank our employees, shareholders, the local communities of the Town of Pachapaqui and
the Community of Aquia, and the Country of Peru for their cooperation, assistance and significant contribution to a successful year to date
for the Company. We view the strong commitment and dedication of our people and all our stakeholders as a crucial factor in continuing to
deliver value to the Company for the benefit of all.
Gregory C. Smith Marvin H. Pelley
Chairman & Chief Executive Officer President and Chief Operating Officer
INDEPENDENT REVIEW REPORT TO INTERNATIONAL CONSOLIDATED MINERALS INC.
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six
months ended 30 June 2008 which comprises the unaudited consolidated interim income statement, the unaudited consolidated interim balance
sheet, the unaudited consolidated interim cash flow statement and related notes 1 to 8.
We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial statements.
Directors* responsibilities
The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors.
The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies
trading securities on the Alternative Investment Market which require that the interim report be presented and prepared in a form consistent
with that which will be adopted in the company*s annual accounts having regard to the accounting standards applicable to such annual
accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial
report based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules
of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is
entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our
terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements (UK and Ireland) 2410, **Review of Interim
Financial Information Performed by the Independent Auditor of the Entity**, issued by the Auditing Practices Board for use in the United
Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the
interim report for the six months ended 30 June 2008 is not prepared, in all material respects, in accordance with the rules of the London
Stock Exchange for companies trading securities on the Alternative Investment Market.
Emphasis of matter - going concern
The company is reliant on securing additional funding in order to finance working capital beyond December 2008 and meet the payment of
redemption rights liabilities falling due for payment in March 2009. Although the directors expect to be able to raise the funds required,
they have no binding agreements in place. These conditions indicate the existence of a material uncertainty which may cast significant doubt
about the company*s ability to continue as a going concern. The interim financial information does not include the adjustments that would
result if the company was unable to continue as a going concern.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
London
29 September 2008
International Consolidated Minerals Inc.
Consolidated Interim Income Statement
For the period ended 30 June 2008
UnauditedSix months UnauditedSix months AuditedYear ended31
ending30 June 2008 ending30 June 2007 December 2007
Note US$ US$ US$
Revenue 141,738 - -
Cost of sales - - -
Gross profit 141,738 - -
Other administrative costs (6,262,401) (10,381,251) (24,368,365)
Provision against intangible - - (36,521,513)
assets
Total administration costs (6,262,401) (10,381,251) (60,889,878)
Loss from operations (6,120,663) (10,381,251) (60,889,878)
Finance income 410,734 384 519,516
Finance expense (1,263,192) (1,339,207) (2,964,117)
Loss before income tax (6,973,121) (11,720,074) (63,334,479)
Income tax expense - - -
Loss for the year/period (6,973,121) (11,720,074) (63,334,479)
attributable to equity holders
of the parent
Loss per share 3
Basic and diluted loss per (0.20) (0.66) (2.68)
share
All activities of the Group are classified as continuing.
International Consolidated Minerals Inc.
Consolidated Interim Balance Sheet
As at 30 June 2008
Note UnauditedAt 30 June UnauditedAt 30 June AuditedAt 31 December 2007
2008 2007
ASSETS US$ US$ US$
Non-current assets
Property, plant and equipment 2,307,278 1,297,887 1,389,683
Intangible assets 43,861,552 36,427,588 40,325,723
Other receivables 2,663,141 852,122 1,748,760
48,831,971 38,577,597 43,464,166
Current assets
Inventory 530,718 233,743 419,891
Trade and other receivables 1,057,316 2,334,423 793,450
Cash and cash equivalents 9,574,370 6,605,433 40,596,114
11,162,404 9,173,599 41,809,455
Total Assets 59,994,375 47,751,196 85,273,621
EQUITY AND LIABILITIES
Non-current liabilities
Financial liability - share 4/5 - - (29,381,638)
redemption rights
- - (29,381,638)
Current liabilities
Trade and other payables (3,994,680) (19,302,141) (6,309,346)
Financial liability - share 4/5 (34,360,068) - (20,933,770)
redemption rights
(38,354,748) (19,302,141) (27,243,116)
Total Liabilities (38,354,748) (19,302,141) (56,624,754)
Net assets 21,639,627 28,449,055 28,648,867
EQUITY
Called up share capital 2,078,129 1,928,563 2,078,129
Share premium account 73,595,721 40,441,334 73,595,721
Warrant reserve 6,874,320 5,253,099 6,874,320
Convertible loan notes equity - 1,319,423 -
reserve
Foreign currency translation 56,409 12,707 92,528
reserve
Accumulated losses (60,964,952) (20,506,071) (53,991,831)
Total equity 21,639,627 28,449,055 28,648,867
Total equity and liabilities 59,994,375 47,751,196 85,273,621
International Consolidated Minerals Inc.
Consolidated Interim Cashflow Statement
As at 30 June 2008
Unaudited Six UnauditedSix AuditedYear ended 31
monthsended 30 June monthsended 30 June December2007
2008 2007
US$ US$ US$
Cash flows from operating
activities
Loss for the year/period (6,973,121) (11,720,074) (63,334,479)
Depreciation 154,786 53,617 150,084
Loss on disposal of assets - - 67,161
Provision against intangible - - 36,521,513
asset
Interest accretion charges - 1,318,638 1,844,276
Interest on redemption 1,425,486 - -
liabilities
Interest received (410,734) - -
Share based payments - staff - 5,490,151 14,963,402
Share based payments - - - 527,020
services
Cash outflow from operating (5,803,583) (4,857,668) (9,261,023)
activities before changes in
working capital
Decrease/(Increase) in (110,829) 741,817 555,669
inventory
Decrease/(Increase) in trade (1,178,247) (330,881) 238,353
and other receivables
(Decrease)/Increase in trade (1,560,634) 1,323,016 (14,376,752)
and other payables
Net cash outflow from (8,653,293) (3,123,716) (22,843,753)
operating activities
Cash flows from investing
activities
Finance income 410,734 - 519,516
Purchase of property, plant (1,072,381) (445,881) (701,305)
and equipment
Purchase of intangible assets (3,535,829) (1,136,208) (5,034,342)
Loans and advances - - -
Net cash outflows used in (4,197,476) (1,582,089) (5,216,131)
investing activities
Cash flows from financing
activities
Finance expense (17,279) (48,478) (524,623)
Issue of ordinary shares - 6,000,000 6,000,000
Issue of share and warrant - 600,000 600,000
units
Issue of warrants - 2,336,389 2,336,389
Loan issues - 1,400,000 1,400,000
Loan repayments - - (5,650,000)
Cash acquired on RTO of ICM - - 79,555,657
Inc.
Redemption rights paid (18,153,696) - (16,084,752)
Net cash inflow from financing (18,170,975) 10,287,911 67,632,671
activities
Net (decrease) / increase in (31,021,744) 5,582,106 39,572,787
cash and cash equivalents
Cash and cash equivalents at 40,596,114 1,023,327 1,023,327
beginning of period
Cash and cash equivalents at 9,574,370 6,605,433 40,596,114
end of period
International Consolidated Minerals Inc.
Notes to the consolidated interim financial statements
For the six months ended 30 June 2008
1. Basis of preparation
This unaudited consolidated condensed interim financial information has been prepared using the recognition and measurement principles of
International Accounting Standards and International Financial Reporting Standards. The principal accounting policies used in preparing the
interim results are unchanged from those disclosed in the group*s Annual Report for the year ended 31 December 2007.
The financial information for the six months ended 30 June 2008 and 30 June 2007 is unaudited and does not constitute the group*s statutory
financial statements for those periods. The comparative financial information for the full year ended 31 December 2007 has, however, been
derived from the statutory financial statements for that period. The auditors* report on those accounts was unqualified, but included an
emphasis of matter over the ability of the company to continue as a going concern.
Basis of consolidation
The consolidated financial statements as at 31 December 2007 reflected the acquisition of 100 per cent. Of the issued share capital of
International Consolidated Minerals Ltd. (ICML). As the shareholders of ICML acquired control of International Consolidated Minerals Inc.
(the *Company*), described as a reverse takeover, the transaction was accounted for as an acquisition of the Company by ICML.
This unaudited consolidated interim financial information therefore represents a continuation of the financial statements of ICML. As a
result the unaudited consolidated income statement, balance sheet and cash flow statement for the period ended 30 June 2007 represent those
of ICML.
Going concern
Following a review of the Group*s financial position and its budgets and plans, the directors have concluded that the Group will need to
raise additional finance in the near future.
The directors are expecting to close on a short term funding transaction to raise $6m in the next week. This funding will finance working
capital and a limited work programme to the end of December 2008.
During the period to the end of December 2008, the directors will continue to pursue a number of longer term funding solutions that will
finance the development of the Group*s assets and enable the Group to settle the redemption rights liabilities of $32,786,224 falling due in
March 2009.
A number of these potential funding transactions are at an advanced stage of negotiation. Whilst the directors are confident that at least
one of these transactions will close in the next three months, there can be no certainty, in current markets, that sufficient funds will be
forthcoming.
If the Group fails to raise these funds it will not be able to meet its liabilities and may not be a going concern. These financial
statements have been prepared on a going concern basis as the directors are confident that the Group will be able to raise the funds
required.
These interim financial statements do not include the adjustments that would result if the Group was unable to continue in operation.
Approval by Directors
This interim report for the six months to 30 June 2008 was approved by the Directors on 29 September 2008.
2. Accounting policies
This interim financial information has been prepared on the basis of the accounting policies set out in the statutory financial statements
for the year ended 31 December 2007. The interim report does not include all the notes of the type normally included in an annual financial
report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 31 December 2007 and any public
announcements made by the Company during the interim reporting period.
3. Loss per share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary
shares outstanding during the period.
In the periods ending 30 June 2008 and 30 June 2007 and the year ending 31 December 2007 the potential ordinary shares are considered to be
anti-dilutive and therefore there is no adjustment to the weighted average number of shares or earnings used in the diluted EPS
calculation.
There have been no issues of shares, options or warrants in the period to 30 June 2008 and therefore the weighted average number of ordinary
shares has been calculated as the number of shares in issue as at 31 December 2007.
In the period ended 30 June 2007 (prior to the reverse takeover set out in note 1 above) the weighted average number of ordinary shares has
been calculated based on the number of ordinary shares issued by the Company to the shareholders of ICML, in accordance with IFRS 3 Appendix
B.
The earnings and weighted average number of shares used in the calculations are set out below:
Period to 30 June Period to 30 June Year to 31
2008US$ 2007US$ December2007US$
Loss attributable to equity (6,973,121) (11,720,074) (63,334,479)
holders of parent used in both
basic and diluted EPS
Weighted average number of 34,113,832 17,838,166 23,618,478
shares used in both basic and
diluted EPS
Basic and diluted EPS - pence (0.20) (0.66) (2.68)
4. Financial liabilities
As at 30 June 2008 As at 30 June As at 31 December 2007 US$
US$ 2007US$
Non-current
Share redemption rights - - 29,381,638
- - 29,381,638
Current
Share redemption rights 34,360,068 - 20,933,770
34,360,068 - 20,933,770
The redemption rights liability is explained in note 5.
5. Share capital
As at 30 June 2008 US$
Authorised share capital:
100,000,000 Ordinary Shares of US$0.001 each 100,000
Total issued, called up and fully paid: No. US$
Ordinary Shares of US$0.001 each 34,113,832 3,411
The amount stated above of 34,113,832 ordinary shares does not include:
� 3,563,720 *FOR AND REDEEM* shares that are subject to deferred redemption and were re-classified as financial liabilities in the year
ending 31 December 2007. These amounts are included in financial liabilities, as shown in note 4. These shares still carry the right to
vote.
The Ordinary Shares listed in the table above carry one vote per share and they entitle the holder to share equally in a distribution of the
profits or assets of the Company by dividend with all other holders of Ordinary Shares, in proportion to the holders* aggregate holding of
all Ordinary Shares.
During the six months to 30 June 2008, no shares were issued by the Company.
Potential issues of shares
As at 30 June 2008 the Company had the following outstanding potential issues of shares:
� 9,935,000 warrants exercisable into 9,935,000 shares, each with an exercise price of US$6.00. Each warrant is exercisable from 14
September 2007 to 13 March 2010. The warrants are redeemable at the Company*s option at US$0.01 per warrant by the Company giving the
warrant holder 30 days notice if:
o the share price is US$10.50 for 20 trading days out of a 30 day trading period, which ends on the 27th day of the redemption notice; and
o trading volumes have been 800,000 shares per day for 10 trading days.
� 641,308 warrants outstanding exercisable into 641,308 shares, each with an exercise price of US$8.00 per warrant. Each warrant was
exercisable until 13 September 2008 and therefore expired post period end. These warrants were issued as part of the RTO to warrant holders
in ICML.
� 496,750 options issued in 2006 to KBC Peel Hunt and Casimir Capital to acquire units (comprising of 1 share and 1 warrant). Each
option has an exercise price of US$10.00 per unit and expires on 13 March 2010. Each warrant is exercisable into shares at US$8.50 per
share.
In addition, the 3,563,720 shares listed in the table above as *Shares redeemed *FOR AND REDEEM* * deferred* are also considered to be
potential shares as they still hold voting rights and in future they may be recognised as equity. These shares are currently recognised as a
financial liability as a result of the deferred redemption terms.
6. Contingent liabilities
a. PMCC * Canadian Action
In a series of emails in August 2006 Gary Sugar, the CEO of Precious Metal Capital Corporation (PMCC), sought compensation of up to $20
million for allegedly introducing Pachapaqui to the Company and/or other recompense (the *PMCC Threatened Claim*). Following discussions
with Gregory Smith, Haviland International Resources Inc. Limited (*HIRI*) and members of the board of directors of Plata-Peru Resources
Inc., and having received written confirmation from the directors of Plata-Peru Resources Inc. that neither PMCC or Gary Sugar had any
interest in Pachapaqui, the Board was unanimously of the view that the PMCC Threatened Claim is opportunistic and without any merit.
On 29 August 2007, PMCC issued a statement of claim in the Ontario Superior Court of Justice in Toronto as Court File number 07-CV-339178PD1
against a number of defendants, including the Company, certain subsidiaries of the Company, Taghmen Ventures Limited (*TVL*), NHG Capital
Limited (*NHG Capital*) and HIRI (the *Claim*). The Claim is similar in nature to the PMCC Threatened Claim, which the board of the Company,
having been advised by its solicitors in England and Canada, believes is opportunistic and without any merit.
The Claim seeks:
(a) an order that ICM transfer its interest in the Concessions to PMCC;
(b) alternatively, a declaration that the ICM Shares issued in exchange for the Concessions are beneficially owned by PMCC and that
they be registered in the name of PMCC;
(c) a declaration that the Consideration Shares to be issued to pursuant to the Acquisition Agreement are beneficially owned by PMCC
and they be registered in the name of PMCC;
(d) an interim injunction preventing the defendants to the Claim from disposing of their interest in the Concessions;
(e) in the further alternative, damages in the sum of US$200,000,000; and
(f) PMCC*s costs of the action on a substantial indemnity basis
As identified in the annual report and accounts for the year ending 31 December 2007, the Defendants brought a Motion for an order
dismissing or staying the Ontario Proceedings on the grounds that the Ontario Court lacked jurisdiction or alternatively that Ontario was
not the convenient forum for the issues raised in the Ontario Proceedings. By a decision dated 2 April 2008, Justice Lederman dismissed the
Defendants* Motion.
The Defendants appealed the decision of Justice Lederman. By a decision dated 7 August 2008, the Court of Appeal dismissed the Appeal.
The Defendants continue to believe that the claim is opportunistic and without any merit, and intend to vigorously defend the claim, and
pursue various counterclaims against PMCC and other parties.
b. PMCC * English Action
As stated in the annual report and accounts for the year ending 31 December 2007, a number of the Defendants to the Ontario Proceedings
(including the Company) issued a claim against PMCC in the Queen*s Bench Division, Commercial Court of the Royal Courts of Justice under
Claim Number 2007, Folio 1651 seeking, interalia:
(a) repayment of a number of loans advanced to PMCC;
(b) various declarations;
(c) damages for breach of English jurisdiction clauses in certain contracts; and
(d) a final anti-suit injunction on terms that PMCC be restrained, whether by itself, its servants, or agents or otherwise howsoever,
from prosecuting or continuing the Ontario Proceedings and that PMCC shall forthwith take all necessary steps to procure the discontinuance
of the Ontario Proceedings.
The Defendants having brought this claim, intend to pursue the various heads of claim.
7. Events after the balance sheet date
On 22 July 2008, the Company completed repayment of monies due to shareholders who elected *For and Redeem* pursuant to the RTO completed in
September 2007. The *For and Redeem* deferred element of US$32,786,224 is still outstanding and due for payment in March 2009.
On 27 August 2008, the Company completed admission of its share capital to the Risk Capital Segment of the Lima Stock Exchange.
On 13 September 2008, 641,308 warrants exercisable into 641,308 shares, with an exercise price of $8 per warrant expired pursuant to their
terms.
8. Availability of Interim Financial Statements
A copy of ICMI*s interim financial statements is available from the Company*s registered office at P.O. Box 709, Zephyr House, Mary Street,
Grand Cayman KY1-1107, Cayman Islands, registered company number CD-160817 and is also available for download from the Company*s website at
www.icmi-inc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEWEDUSASESU
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