Padbury Mining Limited (ASX:PDY) Finalisation Midwest Infrastructure Intellectual Property Acquisition

Perth, July 11, 2011 AEST (ABN Newswire) - Padbury Finalises Mid West Infrastructure Intellectual Property Transaction

Padbury Mining Limited (ASX:PDY) has finalised the purchase of intellectual property (IP) developed by Yilgarn Infrastructure Ltd ("Yilgarn") relating to its investor backed proposal to build an open access, multi user rail network to service the mines of Western Australia's Mid West region.

Settlement between Yilgarn and Padbury has now been finalised following approval from Padbury shareholders at the General Meeting of 13 June, 2011. Consideration for the acquisition was satisfied by the payment of A$2.25 million.

The IP will be vested in a wholly owned Padbury subsidiary Midwest Infrastructure Pty Ltd.

Padbury Managing Director Gary Stokes said the provision of rail and port infrastructure was paramount to Padbury's future and the development of the Mid West mining industry in general.

"The purchase of the IP gives us a viable option to move forward, with the capacity to contribute to an infrastructure solution for the entire Mid West should the current infrastructure proponent be unable to proceed with its proposal in its current form," he said.

"The data includes detailed engineering studies, project definition documents, financial modelling, Chinese investment agreements, financing term sheets and associated legal documents and, crucially, a viable low-cost service-based commercial model for the carriage of ore from the various proposed mining operations to Oakajee.

"By working with others in the region to unlock the value contained in this IP, Padbury is confident it can help facilitate a win-win outcome for its own project as well as other Mid West mines and their major investors who are dependent on a positive outcome for the infrastructure for the future of their mining projects."

Contact

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