Rare Earths Global Limited Acquisition of remaining 39% stake in Sanxie Plant (0208I)
19 7월 2012 - 3:30PM
UK Regulatory
TIDMREG
RNS Number : 0208I
Rare Earths Global Limited
19 July 2012
19 July 2012
Rare Earths Global Limited
("REG" or the "Company")
Acquisition of remaining 39% stake in Sanxie Separation
Plant
Rare Earths Global Limited (AIM: REG), a leading mining services
group focused on the extraction, separation, refinement and trading
of rare earth elements, oxides and other related products, is
pleased to announce that it has exercised its call option to
acquire the remaining 39% of Pingyuan Sanxie Rare Earth Smelting Co
Ltd ("Sanxie Plant") from Grace Coast Limited ("Grace Coast") a
company wholly owned by Mr. Tong Man Tak.
The Sanxie Plant is the rare earth separation and refining
business of the Company which was established in 1994 and is
principally engaged in the business of separating, refining and
producing single rare earth elements, rare earth oxides, rare earth
concentrates, rare earth metals and other rare earth products for
sale on both the domestic and international markets. In July 2010
the Company acquired a 60% share in the Sanxie Plant and at the
time of Admission on AIM in March this year one of its stated
objectives was to exercise the option to acquire the outstanding
39% owned by Grace Coast.
The 39% of the Sanxie Plant will be acquired by the issue of
4,000,000 new ordinary shares in REG and a further US$10.0 million
in cash which shall be paid in three tranches, US$3.0 million up on
signing of the agreement, a further US$3.0 million on or before 15
August 2012 and a final tranche of US$4,000,000 on or before 15
September 2012. The total consideration being paid by REG for the
39% of the Sanxie Plant (based on the closing middle market price
of an ordinary share in REG on 18 July 2012, being 337.5 pence per
share) is approximately US$31.06 million. The initial tranche will
be funded out of the Company's internal resources with the
subsequent tranches funded out of negotiated facilities. For the
year ended 31 December 2011 the profit attributable to the 39%
stake of the Sanxie Plant was RMB19,570,000 (US c.$3.07 million).
In addition, Grace Coast has agreed to a twelve month lock-in of
the 4,000,000 new ordinary shares being issued to them as
consideration from the date of completion of the transaction.
Accordingly, application has been made for the 4,000,000 new
ordinary shares to be admitted to trading on AIM and it is expected
that admission will take place on 25 July 2012.
The new ordinary shares will rank pari passu with the existing
shares of the Company. Following this allotment, the enlarged
issued share capital of the Company will increase to 67,587,681
ordinary shares.
Following completion of the transaction REG will own 99% of the
Sanxie Plant with the remaining 1% held by a local Chinese partner
as required under PRC ownership regulations.
Mr. Tong will, following completion of the transaction, be
beneficially interested in 4,889,507 ordinary shares in REG
representing 7.23% of the enlarged issued share capital of the
Company.
Simon Ong, Chief Executive Officer of REG, commented: "The
acquisition of the remaining 39% of the plant at Sanxie is an
important first step in the continued development and expansion of
the production capacity of REG. We are pleased to be able to
deliver on one of our stated objectives as set out at the time of
our Admission to AIM and the Board will continue to pursue its
strategy with news to follow on the facility arrangements with
Credit Suisse in due course."
- Ends -
For further information:
Rare Earths Global Limited
Simon Ong, Chief Executive Officer Tel: +86 755 8633 6388
Brian Ho, Finance Director www.rareearthsglobal.com
Charles Stanley Securities
Nominated Adviser & Broker
Dugald J. Carlean / Carl Holmes Tel: +44 (0) 20 7149 6000
www.csysecurities.com
Media enquiries:
Abchurch Communications Limited
Joanne Shears / Quincy Allan Tel: +44 (0) 20 7398 7709
joanne.shears@abchurch-group.com www.abchurch-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGUPPMUPPUQB
Rare Earths (LSE:REG)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Rare Earths (LSE:REG)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024