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IMBS acquisition update and further cautionary
MINE RESTORATION INVESTMENTS LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 1987/004821/06
Share code: MRI
ISIN: ZAE000164562
("MRI" or the "Company")
UPDATE IN RESPECT OF THE AQUISITION OF IRON MINERAL
BENEFICIATION SERVICES PROPRIETARY LIMITED ("IMBS") AND ON THE
CURRENT OPERATIONS OF MRI
1. UPDATE IN RESPECT OF THE ACQUISITION OF IMBS
Shareholders are referred to the detailed cautionary
announcement released on SENS on Friday 26 June 2015
(“Announcement”) in which MRI disclosed indicative terms of
the acquisition of approximately 39.2% of the issue share
capital of IMBS ("IMBS Acquisition") as well as further and
related corporate actions thereto.
The board of MRI is pleased to update shareholders that the
IMBS Acquisition is progressing satisfactorily and further
key terms to the transaction are being finalised between the
relevant parties involved with a view to commence preparing
formal legal documentation in the immediate term.
Furthermore, in light of the IMBS Acquisition constituting a
Reverse Takeover in terms of the Listings Requirements, the
Company has submitted and will soon be presenting a
comprehensive business plan to the JSE Limited as per the
Listing Requirements applicable to the AltX bourse.
The Company will release further details and terms in
respect of the IMBS Acquisition once appropriate to do so.
2. UPDATE IN RESPECT OF CURRENT OPERATIONS
Further to the Announcement, shareholders are advised that
conditions at the Company’s coal fines processing
operations, which is located on the site of the Vaalkrantz
Colliery (“Vaalkrantz” or “the Colliery”), owned by Keaton
Energy Holdings, have continued to struggle. Despite a
sustained effort to improve operations, including incurring
further capital investment, the challenge posed by the
severe drought in the region has rendered the current
operations unviable. Accordingly, the Company has decided to
place these operations under care and maintenance until such
conditions improve, and will continue to try to find ways to
operate with reduced water consumption. The Company is
following the regulatory procedures required in terms of
Section 189 (“Section 189”) of the Labour Relations Act No.
60 of 1995, which will result in a restructuring of
operations and redundancies. This decision has not been
taken lightly as MRI recognises the importance of conserving
jobs, but at the same time the need to preserve the
Company’s financial structure and ensure its future
sustainability is paramount.
In the interim the Company has identified alternative sites
upon which it can run its processing operations and is
engaging with relevant parties to develop these sites in the
future. In conjunction with its technology partner, Virto
Inc, MRI has undertaken testwork and commenced commercial
negotiations at a number of these sites, and expects to
provide updates on material developments in this regard to
the market in the future.
3. FURTHER COMMUNICATION
Once all the terms of the IMBS Acquisition have been
finalised, a detailed terms announcement will be published.
Shareholders are advised to continue to exercise caution
when dealing in MRI’s securities until further information
has been published.
Johannesburg
20 July 2015
Designated Adviser
Stellar Advisers (Pty) Ltd
Date: 20/07/2015 05:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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