/KASE, February 18, 10/ - EURASIAN NATURAL RESOURCES
CORPORATION PLC (London), common shares of which are present in
Kazakhstan Stock Exchange (KASE) official list, provided to KASE the following
press release of February 18, 2010:
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London - Eurasian Natural Resources Corporation PLC ('ENRC' or the 'Group')
today announces that it has entered into a conditional agreement ('the
Transaction') to acquire 100% of Enya Holdings BV ('Enya') which holds a 90%
interest in Chambishi Metals PLC ('Chambishi'), a Zambian copper and cobalt
producer, together with a 100% interest in Comit Resources FZE ('Comit'), a
Dubai-based marketing and sales company that historically has handled
Chambishi's copper and cobalt sales. The aggregate consideration for the
Transaction amounts to US$300 million, which will be wholly funded from
ENRC's existing cash resources. The Transaction remains subject to the
satisfaction or waiver of certain conditions precedent and is expected to be
completed no later than the end of June 2010.
The acquisition constitutes a 'smaller related party transaction' for the
purposes of the Listing Rules of the United Kingdom Listing Authority ('UKLA').
Chambishi is a mineral processing facility which produces copper and cobalt.
It is the intention of the management of ENRC to combine Chambishi with the
Group's existing operations in the Democratic Republic of the Congo ('DRC').
ENRC currently plans to invest approximately US$80 million into Chambishi by
the end of 2011, in new and upgraded production facilities. The investment
should increase Chambishi's copper production capacity to 55 kt per annum of
London Metal Exchange ('LME') Grade A copper cathode.
The integrated copper and cobalt mining and smelting businesses of Chambishi
and those in the DRC, when combined, should have an improved cost position
over time. The acquisition also enables ENRC to fast-track its copper and cobalt
expansion and to achieve a higher planned level of combined total capacity, of
130 kt per annum of LME Grade A copper cathode and 12 kt per annum of cobalt
contained metal salts and concentrates by 2012.
Chambishi's current facilities comprise a roast leach electro-winning plant - for
the processing of oxide concentrate, sulphide concentrate or intermediate metal
salts - and an electric arc furnace and a pressure oxidation leach plant for
furnace slag treatment. Chambishi also owns a slag dump of approximately 16.6
million tonnes, with an average grade of 1.10% copper and 0.71% cobalt.
Current copper production capacity at Chambishi is 25 kt per annum of blister
grade copper. Chambishi is also a substantial producer of cobalt, one of the
largest in the world, with a current capacity to produce 6 kt per annum of
refined cobalt metal. The cobalt metal produced at Chambishi is high-grade
and has strong brand recognition in the industry.
Comit acts as a marketing and sales company for all of the copper and cobalt
production of Chambishi.
The independent Board and the management of ENRC believe that the
Transaction, agreed on an arm's length basis, has a compelling strategic
rationale and will create value for all shareholders.
For further information, please, contact:
ENRC: Investor Relations
Mounissa Chodieva +44 (0) 20 7389 1879
James S Johnson +44 (0) 20 7389 1862
Marianna Adams +44 (0) 20 7389 1886
ENRC: Corporate Communications
Julia Kalcheva +44 (0) 20 7389 1861
M: Communications
Hugh Morrison +44 (0) 20 7153 1534
Edward Orlebar +44 (0) 20 7153 1523
Elly Williamson +44 (0) 20 7153 1539
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The press release full version is available on KASE website at
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http://www.kase.kz/files/emitters/GB_ENRC/gbenrc_reliz_180210.pdf - in
Russian;
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http://www.kase.kz/files/emitters/GB_ENRC/gbenrc_reliz_180210_eng.pdf -
in English.
[2010-02-18]