AR. Archipelago Res

RNS Number:9107L
Archipelago Resources PLC
17 January 2008




                           ARCHIPELAGO RESOURCES PLC



OFFER FOR SALE

Further to the announcement on 11 January 2008, Archipelago Resources PLC
("Archipelago" or the "Company") has today posted a document to shareholders
regarding the Offer for Sale by the Company to Qualifying Shareholders (on the
register of members of the Company at 14 January 2008) to apply for one ordinary
share in Archipelago Metals Limited at 1p per ordinary share together with half
an option for every 4 Archipelago Resources plc shares held on the record date
of 14 January 2008.

The document and covering letter which has been despatched to shareholders is
available free of charge on the Company's website,
www.archipelagoresources.co.uk.


BACKGROUND

Having regard to the geographic spread of Archipelago's assets in Indonesia,
Vietnam and The Philippines, Archipelago has over recent years been approached
to consider assets in the natural resource sector with a focus on non-precious
metals.  Archipelago was established to focus on precious metal natural resource
projects.  The devotion of Archipelago's resources towards the non-precious
metal opportunities is inconsistent with the current and future objectives of
Archipelago.

Consequently, to take advantage of the opportunities as they present themselves,
Archipelago has established a separate entity, Archipelago Metals Limited, which
will pursue those opportunities. Archipelago Metals has not traded and has no
assets other than the cash provided by Archipelago as working capital.


REASONS FOR THE OFFER

Having established Archipelago Metals and provided its initial funding,
Archipelago has been issued with 45 million Ordinary Shares and 22.5 million
Options. Directors of the Company also hold 1.5 million options.

The directors wish to separate the activities of Archipelago and Archipelago
Metals and to that end Archipelago proposes to dispose of its interests in
Archipelago Metals to Qualifying Shareholders of Archipelago so that those
shareholders may continue to participate in the non-precious metals
opportunities as well as the precious metal assets of Archipelago.


THE OFFER

Archipelago is seeking to dispose of all of the issued share capital of the
Company, being 45 million Ordinary Shares, which are initially being offered to
Qualifying Shareholders at 1p per Ordinary Share together with Options. The pro
rata entitlement of each Qualifying Shareholder is:


 1 Ordinary Share and half an Option for every 4 Archipelago Shares held on the
                                  Record Date


and is set out in the white Application Form attached to the Offer. Qualifying
Shareholders may, in addition, apply for further Ordinary Shares and Options in
excess of their pro rata entitlement, by completing the pink excess share
Application Form. The terms of the Offer are set out more fully in the Offer
Document.

The Offer is conditional upon valid applications being received for over 50 per
cent. of the Ordinary Shares.

In the event that valid applications are received for 50 per cent. or less, the
Offer will lapse and application monies will be returned to shareholders.

Applications for Ordinary Shares and Options may only be made on the Application
Forms and will only be accepted from Qualifying Shareholders. Entitlement under
the Offer is not transferable and the Application Forms may not be split or
assigned.

No stamp duty or brokerage will be payable in Australia in relation to the
transfer of Ordinary Shares and Options pursuant to the Offer.

If all the Ordinary Shares and Options are not applied for pursuant to the
Offer, it is the intention of Archipelago, following completion of the Offer, to
dispose of any residual holding of Ordinary Shares and Options to third parties.


PROCEEDS OF SALE AND EXPENSES

The total proceeds which it is expected will be raised for Archipelago by the
Offer are approximately �450,000 and, after the deduction of expenses (detailed
below), the expected net proceeds of the Offer are �437,000. The expenses of the
Offer are estimated to be �13,000 and are payable by Archipelago.


ACTION TO BE TAKEN

If Qualifying Shareholders wish to apply for Ordinary Shares and Options under
the Offer, they should complete the white Application Form in accordance with
the instructions thereon and return it, together with the appropriate
remittance, to Security Transfer Registrars as detailed below.  Qualifying
Shareholders wishing to apply for Ordinary Shares and Options in excess of their
pro rata entitlements under the Offer should also complete the pink Application
Form in accordance with the instructions thereon and (together with the
completed white Application Form and remittance) return it with the appropriate
additional remittance, to Security Transfer Registrars as detailed below.

The Application Form(s) and the appropriate remittance(s) should be sent to
Security Transfer Registrars Limited at 770 Canning Highway, Applecross WA 6153
Australia, by post or by hand, so as to be received as soon as possible and, in
any event, by no later than 5.00 p.m. on the Closing Date, at which time the
Offer will close.

The procedure for application under the Offer is set out more fully in Part III
of the Offer Document.

Anyone who is unsure of his course of action should consult a person authorised
under FSMA who specialises in advising on the acquisition of shares and other
securities immediately. If you are in Australia you should consult an
independent person who is licensed by ASIC to give financial product advice.


EXPECTED TIME TABLE OF PRINCIPAL EVENTS

Record date for the Offer                                                             Close of business on
                                                                                      14 January 2008

Latest date for acceptance and payment in full under the Offer                        5.00 p.m. on
                                                                                      7 February 2008

Despatch of definitive certificates in respect of Ordinary Shares and Options         By 22 February 2008



All dates and times are London time.  The timetable may be varied without notice
by the Directors.

Applications for Ordinary Shares and Options may only be made on the Application
Forms and will only be accepted from Qualifying Shareholders. Entitlement under
the Offer is not transferable and the Application Forms may not be split or
assigned.



FURTHER INFORMATION

Additional information on Archipelago Metals and the procedure for accepting the
Offer is set out in the Offer document.



Contacts:

Colin Loosemore, Managing Director, Archipelago Resources Plc.
Tel:  00-618-9364-8301


Richard Chase, Ambrian Partners Ltd (Broker)
Tel:  020-7776-6461


Ron Marshman / John Greenhalgh, City of London PR Limited
Tel:  020-7628-5518



Gerry Beaney / Fiona Kindness, Grant Thornton Corporate Finance (Nominated
Adviser)
Tel:  020 7383 5100




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