STRAITS RESOURCES LIMITED ANNOUNCES BID FOR REMAINING SHARES OF GOLDMINCO CORPORATION

(ASX: SRQ)

PERTH, Australia, May 25, 2011 /CNW/ - Straits Resources Limited ("Straits") announced today that it intends to make an offer to acquire all of the issued and outstanding common shares of Goldminco Corporation (TSX-V: GCP) ("Goldminco") that it does not already own at an offer price of Cdn$0.10 in cash per share.  Straits currently owns, directly or indirectly, approximately 71.33% of the issued and outstanding common shares of Goldminco.  The offer price represents a premium of approximately 82% over the closing price of the common shares on the Toronto Venture Exchange on May 24, 2011, the last trading day prior to this announcement.

Straits has entered into a lock-up agreement with Anglo Pacific Group PLC ("Anglo"), the second largest shareholder of Goldminco, pursuant to which Anglo, subject to certain limited exceptions, has irrevocably agreed to deposit and not withdraw its and its affiliates common shares under the offer.  Anglo owns, directly or indirectly, approximately 17.01% of Goldminco.

Provided that Anglo deposits its common shares under the offer as required by the terms of the lock-up agreement, Straits will have a sufficient number of common shares to acquire all of the common shares not deposited under the offer by way of a subsequent acquisition transaction.  Straits currently intends to proceed with a transaction to acquire the balance of the common shares following the completion of the offer.

Straits has cash resources available to finance the offer.  The offer will be subject to certain conditions including that the common shares held by Anglo shall have been validly deposited and not withdrawn under the offer.  The offer is not subject to a minimum tender condition other than the common shares held by Anglo.

Full details of the offer will be included in the formal offer and take-over bid circular (the "Circular") that is expected to be mailed to Goldminco shareholders in the near future.  The offer will be open for acceptance for at least 35 days following the commencement of the offer.

References in this report to "Straits Resources Limited", "Straits" and "Company" include, where applicable, its subsidiaries.

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking statements or forward-looking information.  The words "intend", "may", "would", "could", "will", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements.  These statements are based on certain factors and assumptions and while Straits considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.  Forward-looking statements are given only as at the date of this release and Straits disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Straits Resources

Straits Resources Ltd (ASX Code: SRQ) is a mining and exploration company focused on copper and gold in Australia and Asia.  Straits owns and operates the Tritton copper mine in NSW and the Mt Muro gold mine in Indonesia and has an exciting exploration portfolio focusing on projects in NSW (through Goldminco) and South Australia.  Straits also owns Magontec, a European based specialty metals business.

SOURCE Straits Resources Limited

For further information:

Mr Milan Jerkovic - Chief Executive Officer
on +61 8 9480-0500, or visit our website at www.straits.com.au.

Profil de l'entreprise

Straits Resources Limited

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.