🕐01.04.10 - 12:58 Uhr
Sable Mining Africa Limited makes offer for Delta Mining Consolidated
Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector: Natural
Resources
1 April 2010
Sable Mining Africa Limited (Sable Mining or the Company)
Offer for Delta Mining Consolidated Ltd
Sable Mining Africa Limited, the AIM listed resource investment company,
is pleased to announce that it has today entered into an agreement to
acquire a further 36.5% of South African-based exploration and mining
company, Delta Mining Consolidated Ltd (DMC) and has made an offer to
acquire the balance of DMCs share capital not currently held by Sables
wholly owned subsidiary, Tanaka Investments Limited.
The proposed acquisitions, which are fully supported by the Board of
DMC, are in line with the Companys strategy to invest in and acquire
resource exploration and development projects in sub-Saharan Africa.
Sable Mining has today entered into an agreement to purchase, subject to
the satisfaction of certain conditions and the operation of pre-emptive
rights on transfer, 490,374 DMC shares from the Avalon Trust (Avalon)
and 25,613 DMC shares from Mikakor CC (Mikakor).
These shares
represent 36.5% of DMCs issued share capital and will be acquired for a
total consideration of US$36,934,517 to be satisfied by the allotment to
Avalon and Mikakor of, in aggregate, 81,533,150 new ordinary shares in
the capital of Sable Mining (the Consideration Shares).
In addition, Sable Mining has today made an offer (the Offer) to
acquire the remaining DMC shares (representing 27.5% of DMCs share
capital) from Rannerdale Limited (Rannerdale), which is a wholly owned
subsidiary of AIM-listed London Mining PLC (London Mining).
As
required by the South African Securities Regulations Code on Takeovers
and Mergers, which currently applies to DMC, the Offer extended to
Rannerdale is on the same terms as the offer made to Avalon and Mikakor.
As such, if Rannerdale accepts the Offer it can elect either to receive
the consideration in the form of shares in Sable Mining (at a price per
DMC share of US$71.58) or in the alternative to elect to receive cash
(at a price per DMC share of US$63.67).
London Mining has publicly
expressed its interest in reviewing its options with regards to its
investment in DMC in its announcement released on 30 March 2010, but the
Company has not yet received confirmation from London Mining as to
whether or not they intend to accept the Offer.
Sable Mining CEO Andrew Groves said, "DMC has what we believe to be
world class coal assets in proven mining jurisdictions.
This
acquisition represents a significant opportunity for Sable, and we
believe that with our support and guidance, its well defined coal
portfolio can be rapidly advanced towards production."
DMC controls four major coal interests in South Africa and Botswana in
established coal producing regions, all with active development
programmes in place to raise their current resource base.
In South
Africa these include the Rietkuil coal deposit, which has short term
production potential utilising the current metallurgical and thermal
coal resource of 200 million tonnes; the Springbok Flats project, which
has in-situ gross tonnages currently modelled at over 2 billion tonnes
of metallurgical and thermal coal; and the Limpopo coal project, which
has a current provisional gross in-situ tonnage estimate in excess of
135 million tonnes and a resource target of 400 million tonnes of
metallurgical and thermal coal.
In Botswana DMC has 12 greenfield
concession blocks covering 8,682 sq km and straddling known coal bearing
sediments in eastern Botswana.
The Consideration Shares represent approximately 12.99% of the issued
share capital of the Company and following Admission, the Consideration
Shares will represent 11.49% of the enlarged issued share capital, which
will then comprise 709,299,172 ordinary shares.
The Offer is, inter alia, conditional on admission of the Consideration
Shares being admitted trading on AIM (Admission).
The Company will
make a further announcement as to the expected date of Admission in due
course.
The Consideration Shares will, when issued, rank pari passu in all
respects with the existing issued shares of Sable Mining, including the
right to receive any dividends and other distributions declared
following Admission.
** ENDS **
For further information please visit www.sablemining.com or contact:
Andrew Groves
Sable Mining Africa Ltd
Tel: 020 7408 9200
Jonathan Wright
Seymour Pierce Ltd
Tel: 020 7107 8000
Hugo de Salis
St Brides Media & Finance Ltd
Tel: 020 7236 1177
Susie Callear
St Brides Media & Finance Ltd
Tel: 020 7236 1177
Susie Callear
St Brides Media & Finance Ltd
Chaucer House
38 Bow Lane
London EC4M 9AY
T: +44 (0) 207 236 1177 | M: +44 (0) 7976 749 561 | F: +44 (0) 207 236
1188 | www.sbmf.co.uk
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