ANM 0.00% 5.5¢ advanced magnesium limited

announcement this evening

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    Restructuring Negotiations

    Document date: Thu 12 Jun 2003 Published: Thu 12 Jun 2003 17:38:21
    Document No: 153279 Document part: A
    Market Flag: N
    Classification: Progress Report
    AUSTRALIAN MAGNESIUM CORPORATION LIMITED 2003-06-12 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    Australian Magnesium Corporation Limited (ASX codes: ANM, ANMNA,
    ANMO) remains in discussions with its major stakeholders.

    These discussions are aimed at reaching an agreement, which preserves
    value for shareholders and stakeholders by restructuring the
    activities of the Company and the Stanwell Magnesium Project.

    The proposed restructure includes halting work on the Stanwell
    Magnesium Project in central Queensland and placing the site on care
    and maintenance.

    An agreement to restructure would enable AMC to regroup, assess
    Stanwell development options and continue the search for a new
    corporate or project partner.

    It would include a significant reduction in AMC staff and Board and
    management changes.

    The Company would continue to operate its QMAG magnesia products
    business at Rockhampton.

    AMC shareholders would retain ownership of the Company and the
    magnesium industry expertise and technology interests held within the
    Group.

    AMC's Distribution Entitled Security (DES) holders will continue to
    receive distribution payments, with the remaining three payments each
    of 3.2 cents per security to be paid over the next 18 months

    AMC is awaiting finalisation of the proposed agreement being
    negotiated with the project's key stakeholders - the Queensland
    Government, the Commonwealth Government, Newmont Australia, and
    Leighton Contractors.

    The aim is to conclude the agreement shortly.

    For further comment contact
    Joel Forwood
    MANAGER - Investor Relations

    Simon Jemison
    GENERAL MANAGER - Public Affairs
    Tel: +61 7 3837 3400 Fax: +61 7 3837 3423
 
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