Zhongjin Share Placement and Strategic Alliance

As announced on 9 December 2008, Perilya entered into a share placement agreement and strategic partnership with major Chinese metal company Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. ("Zhongjin Lingnan"), to raise $45,464,560 (before Transaction costs).

Subject to Shareholder, FIRB and other approvals the transaction contemplated with Zhongjin Lingnan involves a share placement to Zhongjin Lingnan (or a Related Body Corporate nominated by it) of 197,672,000 Perilya Shares at $0.23 per Share.

Importantly, the proposed share placement to Zhongjin Lingnan will raise cash of $45,464,560 (before Transaction costs) and represents a watershed event for Perilya and provides a significant platform for growth and a major operational and funding boost for Perilya.

It will also assist to strengthen Perilya's cash position and help Perilya to withstand the current commodity price environment.

The Perilya Board believes this access to capital provides a significant comparative advantage to other small cap resource companies and will also allow Perilya to advance, as appropriate, development projects.


Perilya shareholders were issued with a Notice of an Extraordinary General Meeting to be held on 5 February 2009 to allow Perilya shareholders to consider and vote on the Company's proposed placement of shares to Zhongjin Lingnan. Date, time and location of the EGM are as follows:

DATE:               Thursday, 5 February 2009

LOCATION:       Conference Suite, Level 8, Exchange Plaza Building,
                          2 The Esplanade, Perth, Western Australia

TIME:                10:30am (Perth time)

The Notice of Meeting was accompanied with an Explanatory Memorandum and included an Independent Expert's Report ("IER") by Ernst & Young which outlines significant factors relevant to Perilya shareholders. The Explanatory Memorandum and the IER have been prepared to assist shareholders in determining whether or not to vote in favour of the Resolution set out in the Notice of Meeting.

Shareholders are encouraged to attend the Meeting, but if unable, then it is requested that a completed Proxy Form is returned without delay to:

Computershare at GPO Box 242, Melbourne, Victoria 3001 or by facsimile on 1800 783 447 (within Australia) or +61 3 9473 255 (outside Australia). If you do not have a Proxy Form please phone Computershare on 1800 729 381 (within Australia) or +61 3 9946 4462 (outside Australia) to arrange for one to be sent to you. 

Shareholders are invited to contact the Company Secretary, Paul Marinko, on (08) 6330 1000 (from within Australia) or +61 8 6330 1000 (from outside Australia) between 9:00am and 5:00pm (Perth time) Monday to Friday.

Related ASX Releases:
Thu 5th Feb 2009
Mon 5th Jan 2009