11 April 2013
IRC Q1 2013 Trading Update
Petropavlovsk PLC (the "Company") is pleased to confirm that IRC Limited ("IRC"), has today announced its Q1 2013 Trading Update.
Key Highlights:
n the completion of the subscription by General Nice Development Limited ("General Nice") of 817,536,000 new IRC shares at a subscription price of HK$0.94 per IRC share;
n Increased production and sales at Kuranakh, resulting in a record-breaking quarter;
n On-going implementation of cost-saving measures and efficiency gains at Kuranakh and across the Group; and
n 2013 full-year production targets re-affirmed.
Completion of Stage one of the US$238 million investment in IRC by new shareholders
The completion of the subscription by General Nice of 817,536,000 new IRC shares is in accordance with Stage 1 of the potential US$238 million investment in IRC by new shareholders, the details of which have been previously announced by the Company and IRC on 17 January 2013.
The Subscription accounts for approximately 18.96% of IRCs issued share capital.
Petropavlovsk remains IRCs largest shareholder, holding 51.16% of IRCs issued share capital.
Stage 2 of the US$238 million investment is the subscription by General Nice and Minmetals Cheerglory Limited ("Minmetals Cheerglory") (together the "Investors"), exercisable at the option of General Nice, of up to an additional 1,110,900,000 new IRC shares at a subscription price of HK$0.94 per IRC share, for a total consideration of US$134.7 million.
This is expected to be completed by the end of the third quarter 2013, as planned.
If both stages of the transaction are fully implemented, provided no additional IRC shares are issued, the Investors will hold c.36% of IRCs issued shares with the Company holding c.40%.
The transaction proceeds will be used towards the development of the K&S Project including the Phase 2 expansion and to advance the development of the Garinskoye Project.
About IRC
Petropavlovsk PLC holds a majority stake in IRC Limited ("IRC"), the Groups former Non-Precious Metals Division prior to its listing on the Stock Exchange of Hong Kong Limited.
The full announcement may be found on IRCs website, http://www.ircgroup.com.hk
About General Nice
General Nice is a member of a group of companies which, collectively, is one of the largest private Chinese iron ore importers.
About Minmetals Cheerglory
Minmetals Cheerglory, a company incorporated in Hong Kong, is a wholly-owned subsidiary of China Minmetals Corporation, which is Chinas largest state-owned international metals and mining company.
Enquiries
Petropavlovsk PLC
|
+44 (0) 20 7201 8900
|
Alya Samokhvalova
|
|
Rachel Tuft
|
|
College Hill
|
+44 (0) 20 7457 2020
|
David Simonson
|
|
Matthew Tyler
|
|
Anca Spiridon
|
|
To unsubscribe from alerts, please visit Petropavlovsk PLCs website.