30 Sep 2010 07:00
30 September 2010
Maghreb Minerals PLC
("Maghreb Minerals" or the "Company")
Acquisition of a significant shareholding in Sallies Limited
The Board is pleased to announce that Maghreb Minerals has today acquired a significant interest in leading fluorspar company Sallies Limited ('Sallies"). Sallies is currently listed on the Johannesburg Stock Exchange and owns and operates the Witkop fluorspar mine in South Africa. The Firebird Global Master Funds, Maghreb Minerals largest shareholder, control approximately 74% of the Sallies ordinary shares. The transaction represents a significant step towards the Company's stated strategy of acquiring fluorspar assets internationally.
The Company has purchased 82,335,700 ordinary Sallies' shares from Honeywell International Inc for a purchase consideration of $1,200,000 in cash. This transaction will give Maghreb an 11.4% shareholding in Sallies and the purchase price is approximately equal to the current trading price of Sallies shares on the Johannesburg Stock Exchange.
Commenting, Richard Linnell, Chairman, said:
"This transaction, with the full support of its major shareholder, Firebird, represents a significant step forward for Maghreb in implementing its stated strategy of acquiring assets in the fluorspar sector internationally to enable it to develop the necessary critical mass in the sector."
Related Party Transactions
Where a company whose shares are quoted on AIM enters into a Related Party Transaction, AIM Rule 13 requires the directors of the company to confirm that they consider, having consulted with the company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as the company's shareholders are concerned.
The acquisition of the shareholding in Sallies is a related party transaction for the purposes of the AIM Rules for Companies by virtue of Firebird having a substantial shareholding in both Maghreb Minerals and Sallies.
For the purposes of the acquisition of the Sallies Shares, the Directors Richard Linnell and Dunbar Dales are considered to be independent directors. The independent directors consider that, having consulted with Westhouse Securities Limited, the Company's Nominated Adviser, the terms of the acquisition of the Sallies Shares are fair and reasonable insofar as the independent shareholders are concerned.
For further information, please contact:
Maghreb Minerals Plc
Richard Linnell - Chairman Tel: +27 11 459 2853
Dunbar Dales - CEO Tel: +27 83 258 9062
Westhouse Securities Limited Tel: +44 (0) 20 7601 6100
Tim Metcalfe / Martin Davison
ENDS