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12 Nov 2010 11:30
For immediate release: 12 November 2010
Emerging Metals Limited ("EML", "Emerging Metals" or "the Company") Acquisition and option over Uranium concentrates
Emerging Metals Limited (AIM: EML), the mining company focused on minor and emerging metals, is pleased to announce that it has contracted for the physical delivery of 25,000lbs triuranium octocide ("U3O8") and has entered into an option agreement for the physical delivery of a further 200,000lbs U3O8.
The contracts are in line with the Company's investing policy approved by shareholders at its meeting of shareholders on 16 April 2010 which encompasses exposure to Investment Metals including but not limited to the acquisition of physical quantities of Investment Metals commodities.
The physical delivery contract is priced at US$58.00 for each and every pound of U3O8 delivered and is in respect of 25,000lbs U3O8. Delivery to a conversion facility in Canada is due on 17 January 2011 with cash payment (equivalent to £ 898,723 at £/$ 1.6134) by no later than 18 January 2011.
The option contract is in respect of 200,000lbs U3O8 for physical delivery by book transfer at a designated facility and expires on 31 January 2011. An option premium of US$500,000 (equivalent to £309,905 at £/$ 1.6134) is payable on 17 November 2010 and the additional option strike price is US$59.00 per pound U3O8, or a total US$11,800,000 (equivalent to £7,313,747 at £/$ 1.6134).
Stephen Dattels, Emerging Metals Co Chairman commented:
"Uranium pricing prospects remain strong. The ability for the Company to invest in physical quantities of investment metals as well as mining projects gives us the flexibility to capitalise on shorter term pricing movements with the objective of generating meaningful returns to shareholders. Whilst cash available for investments remains strong, we are confident this first physical commodity investment will rapidly demonstrate the value of our broader investing policy to shareholders."
-- Ends -- Contact details Emerging Metals Religare Capital Fox-Davies Capital GTH Limited Markets Limited Communications Denham Eke Peter Daniel Fox-Davies Toby Hall Trevelyan-Clark Christian Pickel Emily Staples
+44 (0) 1624 639396 +44 (0) 20 7444 +44 (0) 20 7936 +44 (0) 20 3103
0800 5200 3900
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