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MTX
MEMTX
MTX - Metorex - Acquisition By Metorex Of 100% Of Phoenix Platinum Limited
("Phoenix UK")
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
JSE code: MTX
ISIN: ZAE000022745
Issuer code: MEMTX
("Metorex" or "the company")
ACQUISITION BY METOREX OF 100% OF PHOENIX PLATINUM LIMITED ("PHOENIX UK")
- In accordance with the growth strategy of the group
- Provides further commodity diversification to the group`s portfolio
- Increments earnings from South African operations.
Charles Needham, CEO of Metorex, said:
"This acquisition will not only provide the Metorex group with income from
an additional commodity (platinum) but it represents a strategic entry into
the Platinum Industry."
1. INTRODUCTION
Shareholders are advised that Metorex has concluded an agreement to
acquire 100% of the issued share capital of Phoenix Platinum Mining
Limited ("Phoenix UK") a company incorporated in the United Kingdom
and its subsidiary, for a total consideration of GBP 7.92million
(approximately R110million) from a consortium of private shareholders.
2. THE TRANSACTION
The purchase consideration of GBP7.92million has been satisfied by way
of a cash payment of GBP3.96million, approximately R55million, and an
issue of 2 275 069 new Metorex shares at an issue price of R24.09 per
share.
Phoenix UK has a wholly owned subsidiary company Phoenix Platinum
Mining (Proprietary) Limited ("Phoenix SA") which is registered in
South Africa.
3. INFORMATION RELATING TO PHOENIX SA
Phoenix SA holds the rights to treat a number of chromite tailings
dumps and current arisings on the Western Limb of the Bushveld Complex
for platinum group minerals.
The scoping study completed by Metorex indicated the robustness of the
project at a production rate of 21 000 PGM ounces per annum over a
projected life of approximately 18 years. A processing plant required
to treat the material is to be constructed and will be located between
the towns of Mooinooi and Brits. Negotiations are in progress
regarding additional resources and offtake agreements.
4. CATEGORISATION OF THE TRANSACTION
This transaction falls below the threshold of a Category transaction
in terms of the Listing Requirements of the JSE Limited, however due
to the strategic nature of the transaction, the directors of Metorex
considered it appropriate to inform shareholders.
Johannesburg
7 December 2007
Enquiries:
College Hill
Nicholas Williams - Tel: 011 447 3030
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
Date: 07/12/2007 09:40:42 Produced by the JSE SENS Department.
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