TMC18 Oct 2011 08:23
Commenting on the transaction, Reg Eccles, Chairman, said, "Over the last 12
months we have received a mix of approaches from local companies either willing
to invest in the mine and sell the product in return for a profit share or buy
out our share, subject to agreement with our local partners, and have concluded
that none of the indicative offers are better than that of Jinchuan. Moreover,
our financial commitment to Ipilan is open ended and we have no certainty as to
when Ipilan can be mined, so, after careful consideration we have exercised our
40% voting interest to support our Philippine partners, who with 60% of the
votes, want to sell to Jinchuan".
Victor Kolesnikov, CEO, adds "The proceeds from this transaction, when added to
current cash balances of US$5.6 million, will place Toledo in a very healthy
financial position. Without recourse to its shareholders, Toledo will be able to
support expansion and improvements at and around the Berong mine, which is now
generating its own cash flow since recommencing operations in May; to improve
the ship loading facilities and extend the shipping window; to move forward
positively with respect to ore processing options within the Philippines; and
seek to capitalise on the Company's strengths by geographically diversifying its
mining interests beyond Asia".