RNS Number:2660N
Monterrico Metals PLC
04 February 2008



("Monterrico" or the "Company")



AIM: MNA



Loan Facility Agreement for Monterrico



London: 4 February, 2008:  Monterrico announces that on 4 February 2008 it
entered into a further loan facility agreement (the "Loan Facility") with Xiamen
Zijin Tongguan Investment Development Co., Ltd ("Zijin Consortium"), the
majority shareholder of the Company.



The Loan Facility is for an aggregate amount of up to US$10 million at an
interest rate of not greater than 1 per cent above LIBOR, as published by the
British Bankers Association (BBA). The loan is repayable on 4 February 2009.  At
the option of the Company the whole or part of the loan may be converted into
ordinary shares in the Company ("Ordinary Shares") at a conversion price of the
lower of (i) 350 pence per Ordinary Share and (ii) the average mid-market price
of an Ordinary Share over the three business days preceding the date of
conversion.



The proceeds from the Loan Facility will be used to meet the working capital
needs of the Company for 2008.



The Loan Facility constitutes a related party transaction for the purposes of
the AIM Rules. The Directors of Monterrico (other than Shan Shan (Susan) Li,
Wenzhou Huang and Xiaodong Huang who are also directors of the Zijin Consortium,
and Guobin Hu, who is General Manager of Zijin Consortium) consider, after
having consulted with Monterrico's nominated adviser, Ambrian Partners, that the
terms of the Loan Facility are fair and reasonable insofar as the Company's
shareholders are concerned.



Enquiries:


Monterrico Metals plc                                   Tel: + 44 20 7776 2900

Richard Ralph (Non-Executive Chairman)

Susan Connolly (Investor Relations Manager)


Ambrian Partners Limited                                Tel: + 44 20 7776 6421

Tim Goodman












                      This information is provided by RNS
            The company news service from the London Stock Exchange
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