18 Apr 2011 09:21
Maghreb Minerals PLC
("Maghreb" or the "Company")
Formation of a Fluorspar Marketing Company
Formation of Fluorone Trading (Pty) Ltd.
The Board is pleased to announce that Maghreb has formed a marketing company in conjunction with Mr. Jeffrey Kofsky for the purpose of marketing and trading fluorspar. Mr. Kofsky is a leading expert on the trading and marketing of fluorspar having had a 20-year career in the industry. He possesses an exceptional understanding of the business and the Company will benefit enormously from his knowledge of the customers who purchase fluorspar worldwide and their particular technical requirements.
The new trading company - to be called FluorOne Trading BVI ("FluorOne") - will be owned 49% as to Maghreb and 51% as to Mr. Kofsky. The Company's business will involve the purchase, sale, storage, transport, offtake, hedging, marketing or other dealing of fluorspar products (whether produced by the Maghreb group of companies or otherwise).
Maghreb and Mr. Kofsky have agreed to provide FluorOne, a limited liability company, with its initial capital (proportionate to their shareholdings) and Maghreb has further agreed, by way of a facility agreement with FluorOne, to provide additional capital in due course. Such funding will be made from cash flow arising from the Company's fluorspar operations, when available.
Commenting, Nicholas Davidoff, Chairman, said:
"The establishment of Fluorone trading as a specialised fluorspar trading company represents an important strategic step for Maghreb. This, together with Mr. Kofsky's extensive industry experience, will provide Maghreb with a critical presence in the market that will strengthen the Company's ability to achieve its stated strategy of building a significant position in the international fluorspar industry."
Appointment of Director
The Board of Maghreb Minerals is pleased to announce the appointment of Mr. Jeffrey Lawrence Kofsky (45) to the Maghreb Board with immediate effect. Mr. Kofsky is a leading fluorspar trader with extensive experience in the international fluorspar trade. He joins Maghreb from the Commercial Metals Company, where he spent more than 20 years ending up as Senior Vice President responsible for industrial raw material trading, including fluorspar, and vessel chartering.
There are no further details in relation to the above appointment which require disclosure under paragraph (g) (iii) to (viii) of Schedule 2 to the AIM Rules for Companies.
Mr. Kofsky has been issued with 17,000,000 options to acquire ordinary shares exercisable at a price of 2 pence per ordinary share (which shall vest immediately).
The total number of options outstanding is now 120,033,333 being 18.9% of the current issued share capital, but 9.8% of the share capital as enlarged by the proposed acquisitions of Firebird's interests in Sallies and KFC as disclosed on 24 December 2010.
Update on the Readmission Process
Further to the announcements on 24 December 2010 concerning the proposed acquisitions of interests in Sallies Limited and Kenya Fluorspar Limited (collectively the "Acquisitions"), the company wishes to update the shareholders on progress towards finalising these transactions and readmitting the Company to the AIM Market. The Acquisitions constitute a reverse takeover of the Company for the purposes of the AIM Rules for Companies. The Company is currently working with its advisers on the preparation of an AIM admission document which it expects to be able to publish before the end of the second quarter of 2011.
For further information, please contact:
Maghreb Minerals Plc
Dunbar Dales - CEO Tel: +27 83 258 9062
Westhouse Securities Limited Tel: +44 (0) 20 7601 6100
Tim Feather / Martin Davison