rns3 Nov 2014 12:25
LONDON MINING PLC IN ADMINISTRATION - UPDATE 2
RNS Number : 9903V
London Mining Plc
03 November 2014
News release
Date
For immediate release
Contact
David Jetuah, media relations , PwC
Tel: 020 72121812, Mobile: 07531439437
e-mail: david.jetuah@uk.pwc.com
Pages
2
London Mining plc in administration- UPDATE ("London Mining" or "the Company")
After a very challenging period for London Mining, the joint administrators are pleased to announce that the sale of the Company's Marampa Mine in Sierra Leone has been successfully concluded.
This follows last week's recent announcement of terms being agreed with Timis Corporation to purchase the Company's mining assets.
The administration team's key objective centred on finding a rapid resolution for the Company's long term future despite the uncertainties created by the lack of liquidity and slump in iron ore prices.
Against this backdrop, and alongside a limited amount of credible interest, the joint administrators identified Timis Corporation as the best bid, placing emphasis on Timis Corporation's track record in western Africa and a personal commitment to be part of the solution by securing the support of several Sierra Leone ministries who helped ensure the deal completed quickly. That support has been expressly guaranteed by the President of Sierra Leone, the Minister of Mines and Mineral Resources, the Minister of Finance and EconomicDevelopment, and the National Revenue Authority.
However, there was no alternative but to deliver the sale through a 'prepack' structure which will see some creditors take losses on their indebtedness.
All staff at the mine will see their employment continue with Timis Corporation. Had this transaction not taken place, the mine was hours away from closing, which would have resulted in far more significant losses being suffered by stakeholders, and especially the local community.
Peter Dickens, joint administrator of London Mining plc and director at PwC, said:
"This is a great outcome, not only for the Marampa Mine workforce transferred to Timis as part of the deal, but also in terms of protecting a key asset in Sierra Leone's economy, contributing around 10% of the country's GDP.
"I am delighted that PwC has been able to bring together management, lenders, advisers, the Sierra Leone government and Timis Corporation, all of whom were committed to completing this critical transaction for the Marampa Mine and its workers, which sees the mine's long-term future assured.
"Saving the mine at this difficult time for Sierra Leone was a major priority. The Company's important efforts relating to Ebola treatment will also continue to be maintained."
Frank Timis, Chairman of the Timis Corporation commented:
"Timis Corp is delighted that we have com