| Thu 25 Mar 2010, 16:15 | | MTX - Metorex Limited - Implementation of the Revised Ruashi Debt Package and |
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MTX
MEMTX
MTX - Metorex Limited - Implementation of the Revised Ruashi Debt Package and
Further Ruashi Copper Hedges
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
JSE code: MTX
ISIN: ZAE000022745
("Metorex" or "the Company")
IMPLEMENTATION OF THE REVISED RUASHI DEBT PACKAGE AND FURTHER RUASHI COPPER
HEDGES
1. INTRODUCTION
Shareholders are referred to the announcement released by the Company on 29
January 2010 wherein details of the partially subscribed claw back offer to
raise a minimum of USD100 million ("Claw Back Offer") and the related Revised
Ruashi Debt Package ("RRDP") were provided.
Metorex is pleased to announce that, as a result of the Company receiving
proceeds totalling R586 820 000 in initial subscriptions to the Claw Back Offer,
Metorex has been able to make the required payment of USD35 million ("the Ruashi
Special Instalment") on the Ruashi project financing facility ("Ruashi Debt")
thereby unconditionally implementing the terms and conditions of the RRDP.
Following the Ruashi Special Instalment, the Ruashi Debt now has an outstanding
balance of USD100 million.
As a consequence of implementing the RRDP and the concomitant hedging freedom
that Metorex now has in terms of the RRDP, the Company has entered into further
favourable copper hedging arrangements relating to production at its Ruashi
operations during the 2012 financial year, as set out below.
2. FURTHER HEDGES
The Company has hedged 12 000 tons of copper (representing approximately one
third of projected annual copper production at Ruashi) with a zero cost collar
as follows:
- Metorex has acquired, at no cost, a put option with respect to 12 000 tons
of copper at a strike price of US$6 600 per ton, exercisable during the
period 1 July 2011 to 30 June 2012; and
- Metorex has granted, at no cost, a call option with respect to 12 000 tons
of copper at a strike price of US$7 600 per ton, exercisable during the
period 1 July 2011 to 30 June 2012.
The resultant summary of the Ruashi hedging position, following the further
hedges set out above is as follows:
- 7,800 tons of copper at a strike price of US$3,900 per ton for delivery
during the period March 2010 to June 2010;
- 16,200 tons of copper at a strike price of US$5,972 per ton for delivery
during the period July 2010 to June 2011; and
- 12 000 tons of copper hedged between US$6,600 per ton and US$7,600 per ton
in terms of a zero cost collar during the period July 2011 to June 2012.
This hedge book now considerably mitigates the impact of potential negative
movements in the copper price on Ruashi`s ability to service the Ruashi Debt.
Rosebank
25 March 2010
Corporate and Debt Advisor, Sole Bookrunner and Transaction
Sponsor
One Capital
Independent Sponsor
Deloitte & Touche Sponsor Services
Date: 25/03/2010 16:15:01 Produced by the JSE SENS Department.
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