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METOREX - UPDATE ON THE RUASHI COPPER / COBALT PROJECT AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
Share code: MTX
ISIN : ZAE000022745
Issuer code: MEMTX
(`Metorex` or `the company` or `the group`)
UPDATE ON THE RUASHI COPPER / COBALT PROJECT AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
Shareholders are referred to previous announcements regarding the Ruashi
Copper/Cobalt project (`the Project`) and are advised as follows:
Financing of the Project
It has been proposed that Metorex will raise US$40 million, as a specific issue
of shares for cash to selected financial institutions, to fund Phase I of the
Project (`the cash issue`). This fund raising proposal has been well received
and approval will be required for the cash issue by a 75% majority of votes of
shareholders, excluding related parties, present or represented by proxy at a
general meeting due to be held in January 2005.
Technical report
Steffen, Robertson and Kirsten (South Africa) (Pty) Limited have completed a
Competent Persons Report which includes a review of the technical, legal and
financial aspects of the Project. This report has been submitted to the JSE
Securities Exchange South Africa (`JSE`) for approval.
Legal Due Diligence
Bowman Gilfillan Inc have completed a legal due diligence on the Project with
regard to ownership of mineral title and rights to mine together with all
associated legal requirements.
Impact of the Project on the group
The directors envisage that the Project will provide a significant increase in
earnings to the group for a sustained period commencing during the 2006
financial year. The mining operations will take place in the Democratic
Republic of Congo (`DRC`) which is primarily a Dollar based economy and
consequently eliminate the sensitivity to the Rand/US$ exchange rate other than
regarding the currency translation for group reporting purposes. The Project
will establish a footprint in the DRC allowing for future opportunities and
growth prospects in the region to become available to the group. The cash flows
generated from the Project may be used for growth in the Project itself or
within the group through dividend distributions to the holding company.
Circular to shareholders
A circular containing full details of the cash issue and convening a general
meeting of shareholders will, subject to the approval of the JSE, be posted to
shareholders early in 2005.
Renewal of cautionary announcement
Metorex shareholders are advised to continue to exercise caution when dealing in
their Metorex shares until such time as the circular to shareholders has been
posted.
Johannesburg
22 November 2004
Corporate adviser and sponsor Transaction arranger and corporate
Barnard Jacobs Mellet Corporate Finance adviser
(Pty) Limited Brait Corporate Finance,
a division of Brait South Africa
Limited
Independent competent person Legal adviser
Steffen, Robertson and Kirsten (South Bowman Gilfillan Inc
Africa) (Pty) Limited
Independent reporting accountants Independent adviser to the Metorex
Deloitte & Touche shareholders
Deloitte & Touche Corporate Finance
Date: 22/11/2004 05:30:04 PM
Produced by the JSE SENS Department
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