Sallies Limited - FRM extends support role at Sall
SAL
SAL
Sallies Limited - FRM extends support role at Sallies
Sallies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1903/001879/06)
JSE share code: SAL
ISIN: ZAE000022588
("Sallies")
FRM EXTENDS SUPPORT ROLE AT SALLIES
Johannesburg, 3 October 2006 - FRM Strategies (Pty) Ltd, which was
retained to help turn around Sallies, has agreed in principle to extend its
contract with the fluorspar producer until the end of 2007.
The company last month announced a loss for the year to June 2006 but said
the major advances of recent months - including a capital injection of
R110 million, the acquisition of Buffalo Fluorspar, the virtual completion
of a BEE partnership and the cancellation of the onerous Honeywell contract
- had significantly improved its recovery prospects.
FRM in the past has been remunerated mainly through share options, not
fees, and in terms of the original contract it has to exercise all its
options by February 2008. The three FRM principals - Peter Flack,
Lindsay Robertson and Alastair Moffat - have indicated that they will
continue to hold approximately 7 million of their total of 20 million
shares after this date, but are in the process of selling the balance.
"We need to realise some return for the four years of work we have put into
Sallies but the fact that we are retaining a substantial stake shows our
confidence in the considerable upside in this business. The new contract
is also options-based, but we are still finalising the details," Robertson
said today.
For further information call Lindsay Robertson on 082 807 7709
Issued by du Plessis Associates on behalf of Sallies Limited.
dPA contact Helen McKane on Tel : +27 11 728 4701, Fax: +27 11 728 2547 or
e-mail: sallies@dpapr.com
Date: 03/10/2006 04:52:14 PM Produced by the JSE SENS Department
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