29 Dec 2015 07:00
International Ferro Metals Limited - Chromite Supply Agreement with Rustenburg Platinum MinesInternational Ferro Metals Limited - Chromite Supply Agreement with Rustenburg Platinum Mines
PR Newswire
London, December 28
29 December 2015
International Ferro Metals Limited
(“IFL” or the “Company”)
Chromite Supply Agreement with Rustenburg Platinum Mines Limited and publication of accounts
The Company announces that its South African subsidiaries, International Ferro Metals (SA) (Pty) Limited (“IFMSA”) (in business rescue) and International Ferro Metals SA Holdings (Pty) Ltd ("IFMSAH") have commenced proceedings against Rustenburg Platinum Mines Limited ("RPM") to protect their interests under a Chromite Supply Agreement under which RPM is obliged to supply UG2 chrome ore to IFMSAH. RPM has purported to terminate the Agreement. IFMSA and IFMSAH have received counsel's advice that the purported termination is invalid, and have commenced court proceedings to seek orders to protect their position, including orders that the purported termination is ineffective and that RPM is obliged to continue to supply chrome ore under the Chromite Supply Agreement. The proceedings are expected to be heard in mid-January 2016.
In the meantime, RPM has agreed to continue to supply about 57,000 tonnes of ore which IFMSAH has an accrued right to receive but which have not yet been delivered, at a rate of 5,000 tonnes per month. The reduced supply of UG2 chrome ore from RPM in the interim period will considerably reduce the group’s revenue and place significant strain on its liquidity. As a result, the Company is no longer in a position to publish its annual report and accounts for the year ended 30 June 2015 by the end of December, but expects to do so following the successful resolution to this dispute.
Additionally, the Company has applied to the Australian Securities and Investments Commission (”ASIC”) for a further deferral of its Annual General Meeting to 31 March 2016.
Further announcements in relation to these proceedings will be released in due course.
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For further information please visit www.ifml.com or contact:
| International Ferro Metals Limited | Tel: +27 14 574 6302 |
Chris Jordaan, Chief Executive Officer
| Numis Securities Limited | Tel: +44 (0) 20 7260 1000 |
James Black / John Prior / Paul Gillam
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa. International Ferro Metals is listed on the London Stock Exchange under the symbol IFL.
Forward Looking Statements
This announcement contains certain forward looking statements which by nature, contain risk and uncertainty because they relate to future events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.