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WGI Heavy Minerals Completes Sale of Investment in Transworld Garnet India
www.wgiheavyminerals.com COEUR D'ALENE, ID, Sept. 15 /CNW/ - WGI Heavy Minerals, Incorporated (WG...
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\nwww.wgiheavyminerals.com\n\n\nCOEUR D'ALENE, ID, Sept. 15 /CNW/ - WGI Heavy Minerals, Incorporated\n(WGI) (TSX: WG) today announced that it has completed the sale of its\ninvestment in Transworld Garnet India (Pvt) Limited (TGI). The sale consists\nof WGI's 74% equity interest in TGI and the repayment of debt financing.\n\n\nWGI has repatriated from India US $4.85 million in cash for its 74%\nequity interest in TGI. In addition, WGI has repatriated US $10.0 million in\ndebt financing by obtaining repayment of certain external commercial\nborrowings ("ECB loans") from TGI. Due to the lengthy process involved in\nobtaining approval from the Reserve Bank of India for the repayment of ECB\nloans, WGI incurred exchange losses of approximately US $1.14 million on the\nsale proceeds from the time the funds were deposited in an escrow account on\nAugust 14, 2008 by the buyer of its investment in TGI and the release of the\nfunds on September 12, 2008. During this period the Rupee weakened\nsignificantly against the US Dollar. A further Rupees 28.7 million\n(approximately US $625,000) remain in an escrow account in India which funds\nwill be used to repay additional debt financing owed to WGI. The repayment of\nthe remaining debt is also subject to approval by the Reserve Bank of India.\n\n\nThe sale marks the beginning of WGI's three-year distribution agreement\nwith V.V. Mineral covering garnet, ilmenite and other minerals that may be\npresent in the beach sands mined by V.V. Mineral. The agreement provides WGI\nwith an assured minimum supply of 60,000 metric tons of garnet annually, which\nis a significant increase over current production rates. Garnet grades and\nquality levels will be consistent with material currently supplied to WGI by\nTGI, and additional quantities of garnet will be supplied as V.V. Mineral's\ncapacity expands. In addition, WGI will act as a broker for the sale of V.V.\nMineral's ilmenite products.\n\n\n"The regular and predictable supply of garnet through our new\ndistribution agreement with V.V. Mineral gives WGI's operations the potential\nfor growth in our core business, mineral distribution," said Greg Emerson,\nChief Executive Officer of WGI. "The agreement makes us stronger\nstrategically, allowing us to leverage the strength of our alliance with V.V.\nMineral and the prov...