COEUR D'ALENE, ID, Sept. 5 /CNW/ - WGI Heavy Minerals, Incorporated (WGI) (TSE: WG) today announced that the sale of the Company's interest in Transworld Garnet India (TGI) to V.V. Mineral, announced on a June 11, 2008 has closed in escrow as originally planned.
Rupees 487,354,192, in respect of outstanding inter-company debts due to WGI from TGI, and Rupees 253,082,427, in respect of WGI's portion of the proceeds from the sale of shares, have been deposited in escrow with two Indian banks for repatriation to the Company's bank accounts in Canada. The purchase agreement entered into by the Company contemplated a period of escrow prior to the full completion of the sale because of the currency control regulations in India. It was originally estimated that it would take up to two weeks to confirm the repatriation of funds could be commenced. The process to begin repatriating the funds has taken longer than expected because the bank holding the funds to repay the inter-company amount has delayed wiring funds to the Company's Canadian bank accounts by requesting authorization to do so from the Reserve Bank of India.
While WGI expected the approvals to occur in August, the sale currently remains intact with only the delay in repatriating the funds back to Canada not proceeding as expected. The escrow is in place until September 30, 2008 and the Company expects the necessary approvals to occur prior to that date, which is also the deadline for the closing of the sale to V.V. Mineral. During this time, the Company and VV Mineral are in regular communication and the companies are working together to ensure the smoothest possible transition of supply.
About WGI
WGI Heavy Minerals, Inc. is a marketer of industrial grade minerals sourced primarily out of India, a producer of industrial-grade garnet out of Idaho and Germany, and a manufacturer of replacement parts for ultra-high waterjet cutting systems in the U.S.. The Company's shares are listed on the Toronto Stock Exchange under the symbol WG.
This press release contains forward-looking statements concerning the business, operations, and financial performance and condition of WGI Heavy Minerals, Incorporated. A number of the matters discussed and statements made in the press release contain forward-looking statements reflecting current expectations regarding future assets. When used in this press release, the words "believe", "anticipate", "intend", "estimate", "expect", "project", and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and are naturally subject to risks, uncertainties, and changes in circumstances beyond management's control that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause such differences include but are not limited to: exploration and development risks; risks related to permits and title to property; risks related to foreign countries and regulatory requirements; operating hazards; foreign currency fluctuations; competition; fluctuations in the market price of mineral commodities and transportation costs; uncertainty as to calculations of mineral deposit estimates; uninsured risks; and dependence upon key management personnel and executives. Actual results may differ materially from those expressed here. You should not place undue reliance on such forward-looking statements. The Company is under no obligation to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise.