SALE OF 27.5% INTEREST IN DELTA MINING CONSOLIDATED LIMITED ("DMC")
(Thomson Reuters ONE) -
* London Mining has accepted an offer from Sable Mining Africa Limited
("Sable") for USD24.8m in cash for its 27.5% interest in DMC
* In addition, London Mining expects to receive USD15.2m in Sable shares under
a private agreement with Heine van Niekerk and Pieter Wiese, CEO and CFO
respectively of DMC
London Mining has accepted an offer from Sable, an AIM listed resource company
focused on mining assets in sub-Saharan Africa, for USD24.8m in cash in respect
of London Mining's 27.5% interest in DMC. The offer is subject only to
regulatory approvals relating to change of control in DMC and anti-trust
matters. As a result of the transaction, through a private agreement with Heine
van Niekerk and Pieter Wiese CEO and CFO respectively of DMC, London Mining is
also due to receive USD15.2m of Sable shares from private investment vehicles of
Heine van Niekerk and Pieter Wiese.
London Mining entered into a private agreement on 19 January 2010 with private
investment vehicles of Heine van Niekerk and Pieter Wiese among other parties,
which, inter alia, guaranteed that London Mining will receive total proceeds of
USD40m in the event of the sale of DMC. London Mining has accepted the offer for
USD24.8m cash from Sable for its 27.5% stake in DMC, and is therefore due under
the private agreement a further USD15.2m, which it expects to be paid in Sable
shares. The Company is currently in discussions with Heine van Niekerk and
Pieter Wiese regarding the application of the agreement, which requires
regulatory approval.
DMC holds substantial shareholdings in several early stage coal and iron ore
assets in southern Africa including: the Rietkuil coal project, Springbok Flats
coal project, and Limpopo coal project all in South Africa as well as various
coal prospecting and exploration rights in Botswana and Swaziland. On 8 August
2008, London Mining agreed to take an initial 39.3% interest in DMC Coal, a
company in which parent company DMC had a 30.35% interest, for a total
consideration of USD16.5m, and also issued a USD18.5m loan to DMC Energy, a
subsidiary of DMC. On 13 January 2010, London Mining converted the USD18.5m loan
(including accrued interest) and its USD16.5m investment in DMC Coal into 28% of
the issued share capital of DMC, on a fully diluted basis. The investment in DMC
is held on London Mining's balance sheet at USD29m, following a USD6m write-down
of the Pixley Ka Seme prospect.
Graeme Hossie, CEO of London Mining plc, said "The decision to monetise the
non-core investment in DMC allows London Mining to focus its management time and
balance sheet on the assets it operates."
For more information, please contact:
London Mining Plc
Graeme Hossie, Chief Executive Officer +44 20 7201 5000
Rachel Rhodes, Finance Director
Thomas Credland, Head of Investor Relations
Liberum Capital (Nominated Advisor/Broker)
Clayton Bush/Ellen Francis +44 20 3100 2000
Crux Kommunikasjon AS
Charlotte Knudsen +47 97 56 19 59
Brunswick Group
Carole Cable / Daniel Thöle +44 20 7404 5959
The Company's website can be found at www.londonmining.co.uk
About London Mining
London Mining is focused on identifying, developing and operating scaleable
mines to become a mid-tier supplier to the global steel industry. London Mining
is developing four iron ore mines in Sierra Leone, Saudi Arabia, Greenland and
China as well as a coking coal operation in Colombia. All London Mining's assets
have deliverable production with potential for expansion. The Company listed on
the Oslo Axess on 9 October 2007 and on AIM in London on 6 November 2009. It
trades under the symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO
(Bloomberg).
[HUG#1407216]
Unternehmensinformation / Kurzprofil:
Datum: 23.04.2010 - 08:02 Uhr
Sprache: Deutsch
News-ID 19562
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contact information:
Town:
London
Kategorie:
Business News
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