Bula acquisition to extend life of Tara mine

Following the contract signed in May 2001 and having received the necessary court approvals, Outokumpu to acquire the Bula assets (the Bula orebody, known also as the Nevinstown orebody).

Under the terms agreed between Tara and the receiver, Tara will acquire the assets for a price of €35m.

The company made the acquisition through its Irish subsidiary Tara Mines Limited after executing the final purchase documents with the receiver of Bula Limited (in receivership), Mr Laurence Crowley.

The Bula orebody is next to the north-eastern boundary of the Tara property located in Co Meath and contains the upper extension of the Navan orebody.

The Bula mineral resources and ore reserves are estimated by Tara to be in excess of 8 million tonnes grading 10% Zn and 2% Pb. Further verification drilling is required.

The acquisition of the Bula orebody will extend the mine life of Tara and improve cost efficiency.

Together with completion of the South-West Extension Project, the Bula acquisition will significantly enhance the value of the Tara mine.

Production at the mine is currently suspended and is expected to recommence in September.