MTX
MEMTX
MTX - Metorex - Press Release
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
JSE code: MTX
ISIN: ZAE000022745
Issuer code MEMTX
("Metorex")
PRESS RELEASE
Metorex Limited (`Metorex`) is pleased to announce that it has reached
agreement with the Industrial Development Corporation of South Africa
Limited (`IDC`) to acquire its 35% interest in Chibuluma South Mine Limited
(`Chib South`) for US$21 million (`the transaction`). The purchase
consideration is to be settled by way of an issue of new ordinary shares in
Metorex.
The transaction significantly enhances earnings from Metorex`s copper
division.
The current copper price environment provides Metorex with an attractive pay-
back period in respect of the purchase consideration.
The transaction is conditional upon receipt of approval from the Zambian
Minister of Mines, which is imminent.
Charles Needham, CEO of Metorex said: "This is an excellent opportunity for
us to increase our stake in Chibuluma. The terms are very fair and
significantly earnings enhancing to the Group."
JOHANNESBURG
2 February 2007
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
Date: 02/02/2007 08:00:01 Produced by the JSE SENS Department.
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