Padbury Mining Limited (ASX:PDY) and Aurium Resources Limited (ASX:AGU) Enter Merger Negotiations

Perth, Australia (ABN Newswire) - Padbury Mining Ltd (ASX:PDY) and Aurium Resources Ltd (ASX:AGU) have entered into formal, good faith negotiations on a possible merger between the two companies.

An agreement setting the terms of the negotiations was signed late yesterday afternoon.

This agreement sets out a 60-day exclusivity period and the necessary confidentiality obligations and confirms that each party will undertake due diligence reviews of the other, plus discuss possible merger terms and structures.

Terms of any merger have not yet been agreed and will be discussed as part of the negotiations and are subject to shareholder approval.

About Padbury Mining Limited:

Padbury Mining Limited (ASX:PDY) is a Perth-based, ASX-listed mineral exploration company focused on the development of its significant iron ore assets in Western Australia's Mid West region.

The company's flagship Peak Hill Iron Joint Venture is a highly prospective magnetite and hematite iron ore project located at Robison Range, about 450km north east of Geraldton.

The Company has a solid program of work planned to develop the Peak Hill project over the next three years, with production targeted for 2015-2016.

Source:

Padbury Mining Limited

Contact:

Gary Stokes
Managing Director
Padbury Mining Limited
T: +61-8-6460-0250

Media Inquiries
Tamatha Smith
M: +61-433-569-701