28 Apr 2014 07:00
Sierra Rutile Limited
Process Update
London, UK, 28 April 2014: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile" or the "Company") announces the cessation of discussions with parties potentially interested in making an offer for the Company. On 19 November 2013, the Company announced that it was in discussions with parties that may or may not lead to an offer being made for part or all of the Company's issued share capital. Whilst indications of interest for the Company were received, including in excess of the Company's current market price, the opinion of the board is that these did not offer sufficient value or value certainty to Sierra Rutile's shareholders, given the strong outlook for the Company.
Commenting on the cessation of the process, Sierra Rutile's Chairman, Jan Castro, said: "Whilst we appreciate the attention and interest of parties in Sierra Rutile, it is our opinion that Sierra Rutile is better served exploring the numerous strategic growth options available to it at this time and the interests of our shareholders would not be best served by engaging in extended dialogue with these parties.
Sierra Rutile continues to perform very strongly from a production and cost perspective, positioning the Company positively as the TiO2 feedstock market continues to strengthen, as destocking completes and demand growth continues its already positive trend. Furthermore, given our existing low-cost base, low-capital intensity expansion options, healthy balance sheet and stable shareholder base, Sierra Rutile is extremely well positioned to be an active participant in the development of the sector over the coming months and years, and we believe these development alternatives will provide the greatest value to our shareholders".
ENDS
For Further Information:
Sierra Rutile Limited Yves Ilunga Chief Financial Officer
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+44 (0)20 7074 1800 |
RBC Capital Markets Nominated Adviser and Joint Corporate Broker Stephen Foss / Jonny Hardy
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+44 (0)20 7653 4000 |
Mirabaud Securities Joint Corporate Broker Peter Krens
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+44 (0)20 7321 2508 |
Kreab Gavin Anderson Marc Cohen / Christina Clark |
+44 (0)20 7074 1800 |
Notes to Editors
About Sierra Rutile Limited
Sierra Rutile produces titanium feedstock industrial minerals (primarily rutile, with some associated ilmenite), as well as smaller quantities of zircon. Sierra Rutile's mine, located in the south west of Sierra Leone, is one of the largest natural rutile deposits in the world, with a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 910 million tonnes (as at 30 September 2013).
www.sierra-rutile.com