EXX - Exxaro - Exxaro disposes of its interest in Rosh Pinah Release Date: 15/12/2011 08:02:21 Code(s): EXX
EXX - Exxaro - Exxaro disposes of its interest in Rosh Pinah
Exxaro Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 2000/011076/06)
Issuer Code: EXX
EXXARO DISPOSES OF ITS INTEREST IN ROSH PINAH
Shareholders are advised that Exxaro, through its wholly-owned subsidiary Exxaro
Base Metals and Industrial Minerals Holdings (Proprietary) Limited, has entered
into an agreement (the "transaction agreement") relating to the disposal of its
entire 50,04% shareholding in, and claims against, Rosh Pinah Zinc Corporation
(Proprietary) Limited ("Rosh Pinah") to wholly-owned subsidiaries of Glencore
International AG ("Glencore") (the "transaction") for an undisclosed cash
Glencore has also concluded an agreement with certain other shareholders of Rosh
Pinah, namely PE Minerals (Namibia) (Proprietary) Limited ("PE Minerals") and
Jaguar Investments Four (Proprietary) Limited ("Jaguar") to acquire a further
30,04% shareholding in Rosh Pinah such that Glencore will hold an 80,08%
shareholding in Rosh Pinah. PE Minerals, Jaguar and the Rosh Pinah Employee
Empowerment Participation Scheme Trust will hold the remaining 19,92%
The effective date of the transaction will be the last day of the month during
which the suspensive conditions, set out in paragraph 3 below, have been met.
2. The Rationale
Exxaro completed a Namibian empowerment transaction during 2008, where the
Namibian shareholding in Rosh Pinah was increased to 49,96%.
During 2009, Exxaro announced its intention to divest its zinc assets. This
decision was based on a strategic assessment of the business portfolio which
Exxaro undertook in 2009 after which it was decided to focus on its larger core
assets in the coal and mineral sands industry.
3. Suspensive Conditions
The transaction agreement contains terms and conditions that are usual in a
transaction of this nature, including, inter alia, regulatory approvals to be
obtained in Namibia and South Africa.
Sipho Nkosi, the chief executive officer of Exxaro, commented, "The conclusion
of the transaction is part of Exxaro`s strategic plan to divest from its zinc
assets. The decision to dispose of our shareholding in Rosh Pinah and to cease
production at Zincor, was made in the context of the difficult conditions of the
zinc market, including its cyclical nature, low margins as well as the
significant impact of the exchange rate and higher electricity prices."
The Rosh Pinah zinc and lead mine is situated in south-western Namibia, 800km
south of Windhoek and operates an underground zinc/lead mine. The mineral
deposit occurs in complex structural settings, favouring silling and benching
mining methods. Rosh Pinah produced 101 000 tonnes of zinc concentrate and 19
000 tonnes of lead concentrate during 2010.
Wim de Klerk
Exxaro Resources Limited
Tel: + 27 12 307 4848
Mobile: +27 82 652 5145
15 December 2011
Corporate Advisor and Transaction Sponsor to Exxaro
Merrill Lynch South Africa (Proprietary) Limited
Sponsor to Exxaro
Deutsche Securities (SA) (Proprietary) Limited
Legal Advisors to Exxaro
CLS Consulting Services (Proprietary) Limited
Legal Advisors to Glencore
Date: 15/12/2011 08:02:21 Supplied by www.sharenet.co.za
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