Business
Disposal of Bushveld Magnetite Iron Ore Assets
Disposal of Bushveld Magnetite Iron Ore Assets.
About this update from Sylvania Platinum Ltd.
[{"type":"text","content":"\n \nRNS Number : 8889Y Sylvania Platinum Limited 07 March 2012 \n \n\nSylvania Platinum Limited\n(\"Sylvania Platinum\", \"Sylvania\" or the \"Company\")\n(ASX: SLP, AIM: SLP)\n \nConditional agreement entered into for disposal of Bushveld Magnetite Iron Ore Assets\nFurther to the Company's announcement of 27 February 2012 regarding its intention to dispose of its iron ore assets, located on the Bushveld complex, South Africa(\"Iron Ore Assets\"), the Directors are pleased to announce that the Company has entered into a legally binding conditional agreement with Mercury Recycling Group Plc (\"Mercury\"), which is traded on the AIM Market of the London Stock Exchange (\"AIM\"), pursuant to which Mercury will acquire the Iron Ore Assets for approximately £13.7 million by issuing 203,022,285 fully paid ordinary shares in Mercury (\"Consideration Shares\") to Sylvania (the \"SPA\"). The Iron Ore Assets consist of interests in prospecting rights and future mining rights in the Northern Lobe of the Bushveld Complex north of Mokopane, South Africa. \nIn addition, Mercury intends to carry out a placing of new ordinary shares (the \"Placing\"). The proceeds from the Placing would be used to fund the development of the Iron Ore Assets and for general working capital requirements. \nAs previously noted, the Consideration Shares will be distributed to Sylvania shareholders as a dividend in specie, unless the distribution would result in a Sylvania shareholder holding a small number of Consideration Shares, in which case those Mercury shares will be sold for the benefit of the Sylvania shareholder. Upon such distribution, Sylvania shareholders will hold approximately 85% of the issued share capital of Mercury prior to the issue of any shares pursuant to the Placing. \nFurther details of the SPA are set out below.\nConsideration and value\nSubject to satisfaction of the various conditions precedent set out in the SPA (detailed further below), Sylvania will sell to Mercury all of the shares in the capital of a holding company being established to hold the Iron Ore Assets. Whilst the Iron Ore Assets are currently held by wholly-owned subsidiaries of the Company, it is intended that a restructure will occur prior to completion under the SPA whereby the Iron Ore Assets will be transferred to a separ...