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11 Jan 2011 07:00
11th January 2011
African Minerals Limited
("African Minerals", "AML" or "the Company")
CRM Confirms Intention to Subscribe
African Minerals Limited (AIM: AMI), the iron ore project development company that is developing the Tonkolili project in Sierra Leone, West Africa, is pleased to announce that, further to its press release of 8 December 2010, the Company has now received confirmation from China Railway Materials Commercial Corporation ("CRM") that CRM will exercise its pre-emption rights to maintain its 12.5% shareholding in AML pursuant to the Subscription Agreement between AML and CRM dated 31 March 2010.
Accordingly CRM will subscribe for 6,991,450 new common shares in AML at the placing price of £4.25, for a total consideration of £29,713,662 (approximately US$46M). Completion of the subscription is expected to occur on or about 20 January 2011.
Executive Chairman, Frank Timis, commented:
"CRM's additional equity contribution, together with the ongoing support of our other major shareholders, to fund the continued development of the project provides a strong endorsement of the quality of the Tonkolili asset, our people and the Company's overall strategy."
Contacts
African Minerals Limited +44 20 7104 2280
Alan Watling / Miguel Perry
Canaccord Genuity Limited +44 20 7050 6500
Robert Finlay / Guy Blakeney
Pelham Bell Pottinger Public Relations +44 20 7861 3232
Klara Kaczmarek / Philippe Polman
On 31 March 2010 CRM subscribed for and were allotted by the Company 33,579,374 new common shares in the Company, representing 12.5% of the Company's then total issued share capital. The Company therefore considers CRM to be a Substantial Shareholder under the AIM Rules and as a result is considered to be a Related Party. The directors consider, having consulted with its nominated advisor, Canaccord Genuity Limited, that the terms of the transaction with CRM are fair and reasonable insofar as shareholders are concerned. |
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