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AFRICAN RAINBOW MINERALS LIMITED - Voluntary Announcement: Disposal of ARM's indirect interest in Lubambe Copper Mine

Release Date: 15/08/2017 16:44
Code(s): ARI     PDF:  
Wrap Text
Voluntary Announcement: Disposal of ARM's indirect interest in Lubambe Copper Mine

AFRICAN RAINBOW MINERALS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1933/004580/06
Share code: ARI
ISIN: ZAE000054045
(“ARM” or “the Company”)


VOLUNTARY ANNOUNCEMENT: DISPOSAL OF ARM’S INDIRECT INTEREST IN
LUBAMBE COPPER MINE

ARM shareholders are advised that, further to announcements
indicating that the Lubambe Copper Mine (“Lubambe Mine”) was
under review with an aim to maximise value for ARM, ARM and Vale
International    SA,   a   wholly   owned   subsidiary   of   Vale   S.A.,
(“Vale”) have concluded an agreement for the disposal of ARM and
Vale’s 80% indirect interest in Lubambe Mine located in Zambia
to EMR Capital Bidco (No.2C) Limited (“EMR”) (the “Disposal”).
The 80% indirect interest in Lubambe Mine, which is held in
equal shares by ARM and Vale, includes the equity holding in
Lubambe Mine as well as loans to Lubambe Mine.

The purchase consideration for the Disposal is US$97.10 million
and will be settled in cash. The final amount receivable is
subject to, amongst others, the following adjustments which will
be finalised on completion of the Disposal:

      i.   Settlement of Lubambe Mine’s general banking facility;
           and
     ii.   Additional funding provided to Lubambe Mine by ARM and
           Vale between 1 May 2017 and the completion date.

Completion of the Disposal is subject to the fulfilment of agreed
conditions precedent.

EMR is a specialist resources private equity management firm
with a proven investment track record spanning over 20 years.
It manages investments of more than US$2 billion.

The   Disposal   falls   below   the   transaction   categorisation
threshold in terms of the Listings Requirements of the JSE
Limited.

For all investor relations queries, please contact:

Jongisa Magagula
Head of Investor Relations and Corporate Development
Office: +27 11 779 1507
Email: jongisa.magagula@arm.co.za

Johannesburg
15 August 2017

Investment Bank and Transaction Sponsor to ARM
The Standard Bank of South Africa Limited

Legal adviser to ARM
Bowman Gilfillan

Sponsor to ARM
Deutsche Securities (SA) Proprietary Limited

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