SA Mineral Resources Corporation Limited - Propose
SA Mineral Resources Corporation Limited - Proposed Acquisition Of Nimag Limited
Cautionary Announcement
SA Mineral Resources Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
Share code: SAM ISIN: ZAE000012019
("Samroc")
PROPOSED ACQUISITION OF NIMAG LIMITED CAUTIONARY ANNOUNCEMENT
Agreement in principle has been reached between Samroc, Golden Valley Mines
Limited ("Golden Valley") and NiMag Limited ("NiMag") in terms of which, subject
to certain conditions precedent, Golden Valley and Samroc will jointly acquire
100% of the equity of NiMag for a consideration of R60 million, to be settled
partly in Golden Valley and Samroc shares and partly in cash.
Golden Valley, which will purchase 50% of the shares in NiMag with Samroc
purchasing the other 50%, is a company registered in Australia and listed on the
Australian Stock Exchange. Golden Valley owns 34,6% of Samroc`s issued shares.
NiMag is based in Gauteng and is engaged principally in the manufacture and
distribution of nickel and magnesium alloys and of metal fibres. Its last
audited accounts for the year ended 30 April 2002 disclosed revenue of R103
million and net profit before tax of R12,7 million. The major part of its
revenue is export based.
The acquisition is subject to a number of conditions precedent, inter alia:
The satisfactory completion by the purchasers of a due diligence investigation
into NiMag;
The completion and signing of a formal written agreement of sale;
Regulatory approvals, including inter alia those of the JSE Securities Exchange
South Africa ("the JSE"), the Australian Stock Exchange, the Exchange Control
authorities of South Africa, the Competition Commission and the Securities
Regulation Panel; and
Board and, if required, shareholder approvals of the companies concerned.
Cautionary announcement
A further announcement will be published in due course giving full details about
the acquisition in compliance with the requirements of the JSE. Until such
announcement is published, Samroc shareholders are advised to exercise caution
in dealing in their Samroc shares.
Irene
31 October 2002
Sponsor
Sasfin Bank Limited
Date: 31/10/2002 08:38:26 AM Produced by the JSE SENS Department
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