/KASE, May 5, 08/ - EURASIAN NATURAL RESOURCES CORPORATION PLC
(London), common shares of which are traded in the official list of Kazakhstan
Stock Exchange (KASE) of category "А", provided KASE with the press release
as follows:
Quotation start
London - Eurasian Natural Resources Corporation PLC ('ENRC' or, together with
its subsidiaries, the 'Group'), the holding company of a leading diversified
natural resources group with integrated mining, processing, energy and
logistical operations based in Kazakhstan, today announces the exercise of an
option to acquire a 50% interest in Bahia Mineracao Limitada ('BML'). The 50%
interest in BML is being acquired from Zamin BM NV ('Zamin') for a cash
consideration of US$300 million.
BML is a Brazilian company focused on the development of an iron ore deposit in
the Bahia State of Brazil. ENRC believes that BML has a high-quality asset base.
As part of an ongoing pre-feasibility study, SRK Consulting have produced a
Mineral Resource Statement which reports, according to JORC guidelines, 470
million tonnes of combined Measured and Indicated Mineral Resource at 39%
iron content and an additional 1,490 million tonnes of Inferred Mineral Resource
at 30% iron content.
BML's management team has extensive experience of developing similar
resources. Good progress has already been made in developing an infrastructure
plan and BML has engaged the support of key contractors, including SRK
Consulting and Construcoes e Comercio Camargo Correa S/A, to develop the
project.
ENRC is confident that the iron ore market continues to offer attractive
opportunities, particularly in view of the recent growth in the price of and
relative demand for iron ore. ENRC believes that the acquisition of this stake
will further enhance ENRC's position in the iron ore market; ENRC's Iron Ore
Division produces 17 million tonnes of iron ore concentrate annually.
Commenting on the acquisition Dr. Johannes Sittard, Chief Executive Officer of
ENRC, said, "We are excited by the prospects and the fundamentals of the iron
ore industry. With this outlook we particularly welcome the opportunity to
acquire an interest in BML. At full output this project could support an
operation producing in excess of 20 million tonnes of concentrate per annum. We
are confident that in time the acquisition will enhance shareholder value."
Armando Santos, Chief Executive Officer of BML, said, "In addition to the very
favourable market conditions supporting the development of this project, we are
delighted by the strong governmental support to BML in the State of Bahia,
including the environmental authorities, which we expect to facilitate the
implementation programme."
Credit Suisse Securities (Europe) acted as sole financial advisor to ENRC for
this acquisition.
For further information, please, contact:
ENRC
Mounissa Chodieva +44 (0) 20 7389 1879
James S Johnson +44 (0) 20 7389 1862
M: Communications
Hugh Morrison +44 (0) 20 7153 1534
Edward Orlebar +44 (0) 20 7153 1523
Julia Kalcheva +44 (0) 20 7153 1517
Credit Suisse Securities (Europe) Limited
Jeff Couch +44 (0) 20 7888 8888
Quotation end
The full text of the press release is available at the KASE website at:
-
http://www.kase.kz/emitters/scan/gbenrc/gbenrc_reliz_010508.pdf - in
Russian;
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http://www.kase.kz/emitters/scan/gbenrc/gbenrc_reliz_010508e.pdf - in
English.
[2008-05-05]