Metorex Limited - Crew Places Metorex Shares With Institutions
Metorex Limited
Share code: MTX
ISIN code: ZAE0000 22745
Issuer code: MEMTX
CREW PLACES METOREX SHARES WITH INSTITUTIONS
Metorex Limited today confirmed that the Crew Development Corporation had
successfully placed 21 208 412 Metorex Limited shares with a number of local
institutional investors. Crew Development Corporation, a company listed on the
Toronto Stock Exchange has in addition placed a further 5% of its Metorex
holding (approximately 7 000 000 shares) with another institution leaving Crew
with a residual shareholding of 21% of Metorex Limited, a portion of which has
been earmarked for empowerment organisations.
Commenting on the transactions, Metorex Chairman, Simon Malone, explained:
"Crew`s predominantly Norwegian investors wish to focus on a gold mining project
in Greenland. Metorex has always been a major asset and cash generator for
Crew. Crew now requires funding in order to further its direct investment in
the Nalunaq Gold Project and has sold its Metorex investment in a controlled
fashion. We were delighted that the institutions took the opportunity to
acquire new or an additional holding in Metorex, especially after our recent
placing. We welcome the new institutional shareholders to the Metorex
register."
Financial Director, Charles Needham said the placement also largely addressed
the liquidity, tradability, free float and overhang problem faced by Metorex and
effectively converted Metorex into a truly public company as opposed to its
previous equity structure and limited free float. "The market was aware that
Crew, which held 41% of Metorex, could become sellers and a number of
institutions had indicated concern about this overhang. Crew`s exit has been
managed in conjunction with Metorex management. The sound working relationship
between the companies is borne out by Crew confirming it wishes to participate
directly in appropriate investment opportunities with Metorex. We expect this
corporate restructure to result in increased volumes traded and spark greater
interest in the Metorex shares."
The bookover of the 28 million shares went through the market on the 16th and
18th October 2002.
In April Metorex placed 18 100 000 shares with a number of institutions, raising
some R57 million to fund a number of expansion projects.
JOHANNESBURG
22 October 2002
Date: 22/10/2002 02:08:51 PM Produced by the JSE SENS Department
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