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CHROMETCO LIMITED - Additional Disclosure and Withdrawal of Cautionary Announcement

Release Date: 25/01/2017 15:30
Code(s): CMO     PDF:  
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Additional Disclosure and Withdrawal of Cautionary Announcement

CHROMETCO LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2002/026265/06)
Share code: CMO
ISIN Code: ZAE000070249
(“Chrometco” or “the Company”)

ADDITIONAL DISCLOSURE AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

1.   INTRODUCTION

Shareholders are referred to the announcements released on SENS,
the last of which was dated 8 December 2016 wherein the Company
announced that it had entered into agreements to recapitalise
the Company by way of a subscription agreement for R5 million
and a loan facility of R10 million.

The Company also announced that it had entered into an
agreement to acquire 51% of Palm Chrome Holdings Proprietary
Limited (“Palm Chrome”) in exchange for 200 million Chrometco
ordinary shares (“Palm Chrome Acquisition”).

Furthermore, the Company announced that it had entered into an
agreement to acquire 51% of Black Chrome Holdings Proprietary
Limited (“Black Chrome”) and 25% of the commodity trading
company, Sail Minerals Proprietary Limited (“Sail”) in exchange
for 2 205 million Chrometco ordinary shares (“Black Chrome
Acquisition”).

2.   ADDITIONAL INFORMATION

Shareholders are advised that for the six month period ended
31 August 2016, the net assets of Black Chrome were -R368 784
and zero income. For the six month period ended 31 August
2016, the net assets of Palm Chrome were R2 200 000 with a net
loss for the period of R55 337. For the six month period ended
31 August 2016, the net assets of Sail Minerals were R5 100
280 with a net profit for the period of R1 314 141.

The UWR mine, owned by Black Chrome became operational towards
the end of 2016 and is now generating revenue.

The commencement of mining activities at the Black Chrome
mine, as well as the valuation of the mine, based on its
ability to generate profit for at least the balance of the
current sixteen year mining right, is at the core of the
rationale for the Black Chrome Acquisition, the details of
which will be set out in more detail in the circular.

3.   WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

Given the information disclosed herein, shareholders are
advised that caution is no longer required when dealing in the
Company’s securities.

Johannesburg
25 January 2017

Designated Advisor and Corporate Advisor: PSG Capital
Proprietary Limited

Date: 25/01/2017 03:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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