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METMAR LIMITED - Metmar and Kalagadi Manganese enter into a toll treatment agreement

Release Date: 13/06/2013 17:43
Code(s): MML     PDF:  
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Metmar and Kalagadi Manganese enter into a toll treatment agreement

METMAR LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/007269/06)
Share code: MML
ISIN code: ZAE000078747
(“Metmar” or “the Company”)

METMAR AND KALAGADI MANGANESE ENTER INTO A TOLL TREATMENT
AGREEMENT

Metmar has entered into a toll treatment agreement (“Toll Agreement”) with Kalagadi
Manganese Proprietary Limited (“Kalagadi”), through its wholly-owned subsidiary,
Metmar Trading Proprietary Limited.

In terms of the Toll Agreement, Kalagadi has been appointed as an independent
contractor to process manganese ore fines and coke breeze in the Kalagadi sinter
plant to produce sintered manganese for and on behalf of Metmar in return for a fixed
tolling consideration.

The arrangement is expected to be mutually beneficial as Kalagadi will have the
opportunity to commission and operate its sinter plant prior to completion of its fully
integrated manganese project, and will also benefit from the cash flows generated
through the tolling consideration. Metmar will derive benefit from the valorisation of
portion of its existing coke breeze stockpile, increased marketing volumes, and the
cash flows generated through the sale of the sintered manganese.

The Toll Agreement will endure for an initial period of approximately nine months in
order to convert a maximum of 800 000 tonnes of manganese ore fines into sintered
manganese. Thereafter, and by mutual agreement, Metmar and Kalagadi may agree
to extend the Toll Agreement for a further agreed term.

Metmar owns 11.66% of Kalahari Resources, which owns 40% of Kalagadi, the
developer of the manganese project in the Kalahari basin.

Bryanston
13 June 2013

Sponsor
One Capital

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