FOOTE MINERAL <FTE> TO MERGE INTO RIO TINTO
Foote Mineral Co said it has signed
a letter of intent to merge into <Rio Tinto-Zinc Corp PLC> for
cash.
    The company said at the time of the acquisition, its assets
will include only lithium and ferrosilicon operations. Foote,
which is 83 pct owned by Newmont Mining Corp <NEM>, has signed
a letter of intent to sell its Cambridge operations and said it
is in talks on the sale of its manganese operations with
several companies.  Foote said Newmont has informally indicated
it would vote in favor of the Rio Tinto proposal.
    Foote said terms of the agreement, including price for the
proposed cash transaction, have not been released because they
are subject to a continuing due diligence investigation.
    The company said a definitive merger agreement is expected
to be negotiated within six weeks and shareholders are expected
to vote on the deal at a meeting expected to be held in June or
July.
 Reuter
