OPP.L Regulatory News (OPP)

22 Jun 2007 07:33

Origo Sino-India PLC22 June 2007 RNS & MEDIA RELEASE June 22, 2007 ORIGO STRENGTHENS RELATIONSHIP WITH FOMENTO INTERNATIONAL Origo Sino-India PLC ("Origo")(LSE:OSI), the investment and strategic advisorycompany focused on the private equity markets of China and India, announcedtoday that it has signed a Letter of Intent with Fomento International Ltd ("FIL/the Company", part of one of India's leading, privately owned iron ore miningconglomerates. The Letter of Intent provides for development of new projects inChina with off-take commitments and the formation of a joint venture to prospectfor and mine iron ore in Mauritania. Meanwhile, Origo confirms that it is closeto completing negotiations with FIL on the equity subscription in the Company. To implement the Letter of Intent, Origo has formed Origo ResourcesInternational Ltd ("Origo Resources"), as a 100% owned subsidiary. Origo Resources will assist FIL to develop and execute mineral based projects in China and provide related services. A tonnage, as well as investment linked success fees will be payable to Origo when these projects/investments are implemented. Commenting, Chris Rynning, chief executive of Origo said: "This arrangement gives Origo the opportunity to play a key role in the cross border, Sino-Indian iron ore trade. We hope to generate good long term cash flow for Origo from closed sales to the booming Chinese steel sector." The FIL spokesperson added: "Following a recent visit to China, organized by Origo, FIL is confident that Origo will secure attractive investment positions for us in China. This will help augment our business in the consistently growing Chinese market." Following a recent visit to Mauritania by a FIL/Origo team to explore some specific iron ore prospecting leases, the Letter of Intent also provides for the creation of a joint venture ("JV") in which FIL will hold 51% and Origo Resources will hold 49%. This JV will work with an identified local partner to procure exploration and mining rights in Mauritania. Vinay Ganga, Origo's India managing director who led the team in Mauritania comments: "Whilst remaining realistic about the time, cost and complexity of developing such a project, we are optimistic that this is potentially a significant opportunity for us and one that deepens and further cements our relationship with the Fomento Group." END For further information please call: Christopher Joll/Tim McCall, MJ2 020 7491 7776 Notes to Editors 1. Origo Sino-India plc ("Origo"): • Origo is an established private equity investor and strategic consultancy business, which provides its shareholders with exposure to growth opportunities and private equity returns in China and India. • Origo's business model is to generate capital gains from private equity investment in growth companies from which it also generates fees for consultancy services related to further fundraisings, M&A and strategic development. • Origo is aligned with two major institutions which provide a source of high quality deal flow. In China, Origo work closely with China Equity, a leading private equity firm, whose chief executive is on Origo's board. In India, Origo has entered into a memorandum of understanding with SBI Capital Markets, one of longest established companies in the Indian Capital Markets. A former chairman of SBI is on the board of Origo. • At the AIM Placing in December 2006 Origo raised £12.8 million gross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence per share. Each Ordinary Share carries a Warrant exercisable at 55p. Seymour Pierce Ltd is the nominated adviser and broker. This information is provided by RNS The company news service from the London Stock Exchange