FOOTE MINERAL &lt;FTE> TO MERGE INTO RIO TINTO

  Foote Mineral Co said it has signed
  a letter of intent to merge into &lt;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 &lt;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.
  

