Lafayette Mining Gets Local Partner For Philippine OpsMANILA...

Lafayette Mining Gets Local Partner For Philippine Ops
MANILA (Dow Jones)--Australia's Lafayette Mining Ltd. (LAF.AU) said Tuesday it has restructured and strengthened its operational management team with the introduction of a Filipino partner to oversee operational and administrative activities in the Philippines.

Lafayette said the team is led by businessman Carlos Dominguez, a former secretary of natural resources and of agriculture.

ADVERTISEMENT


The Australian mining firm said Dominguez also heads a group of international investors who will invest at least A$1 million in Lafayette through the purchase of 10 million new shares, equivalent to a 1.6% stake, at 11 cents each. It said the purchase will be considered at a shareholders' meeting Jan. 25.

Lafayette said the management team will receive 10.75 million options at an exercise price of 17 cents a share plus 5 million options at an exercise price of 12 cents a share, subject to performance benchmarks.

As part of the agreement, Dominguez will become chairman, president and chief executive of Lafayette's operating arm, Lafayette Philippines Inc. Dominguez will also join Lafayette's four-person board.

Robin Widdup, managing director of the Lion Selection Group, owner of 20% of Lafayette, will also join Lafayette's board.

Lafayette directors Kevin Robinson and Paul Taylor are stepping down from the board to make way for the changes.

Lafayette Philippines developed and operates the Rapu Rapu base metal facility, located 350 kilometers southeast of Manila. The Rapu Rapu base metal operations poured its first gold in July 2005, but suspended plans to move base metal production late last year following mine spills. The company is now in the process of securing government approvals to restart the operation.

When in full operation, Rapu Rapu is expected to produce 10,000 tons of copper, 14,000 tons of zinc, 50,000 ounces of gold and 600,000 ounces of silver every year.