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News > ASX Announcement - Metminco Secures Option to Gain Control of Hampton Mining Limited

Junior Investment Company grants Metminco Limited an Option to purchase its entire share holding in Hampton Mining Limited

This gives Metminco an irrevocable right to acquire a controllinginterest in Hampton

Option is for six months duration via three payments of up to amaximum US$1.0 million

Successful completion of A$2.5 million capital raising

Option

On 18 September 2009 Metminco Limited ("Metminco") signed an option agreementwith Junior Investment Company ("JIC"), whereby Metminco has an irrevocable right topurchase a controlling interest in Hampton Mining Limited ("Hampton"). The Optiongranted by JIC to Metminco is in respect of all JIC’s 31.9 % shareholding in Hampton.

Hampton’s flagship project is the Los Calatos copper-molybdenum (Cu–Mo) porphyrydeposit, located in far south Peru. Los Calatos is in an established copper porphyry beltthat already hosts three major existing Cu-Mo mines. Metminco recently announced aJORC compliant ore resource for the Los Calatos project and approval from the PeruvianGovernment for a substantial drilling program. The proposed drilling, of approximately20,000 metres in 26 diamond core holes, is primarily designed to infill and expand theexisting resource base. Hampton currently has sufficient free cash to significantly fundthis drilling program.

Metminco paid JIC US$ 700,000 for granting the Option for a period of 4 months,extendable at Metminco’s election for a further month (5 months in total) on paymentof US$ 100,000 and an additional one month (6 months in total) on payment of a further US$ 200,000.

On exercise of the Option by Metminco, JIC must offer all its Hampton shares on thesame terms to other Hampton shareholders including Metminco in accordance with preemptivepurchase rights clauses of the Hampton Constitution ("Hampton Pre-EmptiveRights"). Metminco will need to obtain all necessary shareholder, regulatory and otherapprovals prior to exercising the Option.

If JIC holds any Hampton shares after complying with the Hampton Pre-Emption Rightsthen Metminco must pay US$ 0.18074 and issue JIC two (2) Metminco shares for eachHampton share held by JIC and acquired by Metminco.

If all other Hampton shareholders exercise their Hampton Pre-Emptive Rights, thenMetminco would own 53.6% of Hampton. If no other Hampton shareholders exercisetheir Hampton Pre-Emptive Rights then Metminco would hold 68.4% of Hampton.JIC has worked closely with Metminco to achieve an outcome that is mutually beneficialto both parties. On exercise of the Option by Metminco, and completion of thepurchase, JIC will become a significant shareholder in Metminco, enabling JIC toparticipate in future value resulting from the development of the Hampton Projects.Metminco views the Option as a very positive development for the Company. It willallow Metminco to optimally manage the project development activities of Hampton,thereby growing value for shareholders.Capital Raising

On 24 September 2009 the Company successfully completed a capital raising of A$2.5million by issue of 16,666,666 shares at an issue price $A 0.15 to sophisticated andprofessional investors. These funds will be applied to meet JIC option fees, workingcapital and increased cash reserves.

Date: Friday 25 Sep 2009