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Investors and Media: Latest News
Sale of Northam shares to redeem debt and facilitate the unbundling strategy
Johannesburg, 26 April 2010
Mvelaphanda Resources Limited (“Mvela Resources” or the “Group”), today announced the sale of 44 million shares in Northam Platinum Limited (“Northam”) at a price of R50 per share to Eurasian Natural Resources Corporation PLC (“ENRC”).
The R2.2 billion received from ENRC will substantially reduce Mvela Resources’ debt and enable it to proceed with the simplification of its corporate structure under the unbundling strategy.
Commenting on the sale of the Northam shares, Bernard van Rooyen, Executive Deputy Chairman of Mvela Resources said: “In 2009, Mvela Resources redeemed approximately R1.86 billion of its debt through the sale of Gold Fields shares, but relative underperformance by the South African gold shares, including Gold Fields since December 2009, has provided little opportunity for further sales. Northam’s share price has however, risen significantly in the last year and the sale of a 12.2% stake to ENRC at a competitive price, will ensure that the unbundling strategy proceeds timeously”.
ENRC is one of the world’s leading natural resources companies. It operates six integrated divisions, supported by a central sale and marketing operation, namely: Ferroalloys, Iron Ore, Alumina and Aluminium, Energy, Logistics and Other Non-ferrous. ENRC controls sizable proven reserves of chromium, manganese, iron ore, bauxite, coal, copper and cobalt, supplemented by extensive resources. ENRC’s shares are listed on the London Stock Exchange and the Kazakhstan Stock Exchange with an equivalent market value on 23 April 2010 of approximately R178 billion.
Mvela Resources has briefed the Department of Minerals Resources (“DMR”). The DMR supports the additional foreign capital investment and the vote of confidence in the South African mining industry from a global, diversified mining company of the calibre of ENRC.
Mvelaphanda Resources
James Wellsted
Tel: (011) 325 5323
Mobile: 083 453 4014
james@mvelares.co.za
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