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Metorex will take an M&A breather after CRC deal - Charles Needham, CEO In an interview on ClassicFM @ 18:40 on Thursday 23 August 2007 [miningmx.com] -- METOREX will take a break from merger and acquisition (M&A) activity after the approval of the proposed Copper Resources Corporation (CRC) deal, said CEO Charles Needham. "Assuming that the acquisition is successful, we would keep our heads down for some time in terms of M&A and rather focus on growing our existing operations," Needham said on Classic Business Day, a week-nightly radio broadcast. Most of Metorex's operations needed re-equipping and redevelopment, he said. "And that would keep us busy for at least the next 18 months, but looking forward, growing the company would be a combination of organic and acquisitive growth." Commenting on the intended acquisition of CRC, Needham said the company was in an advanced stage. CRC is an AIM-listed company, with assets in the Democratic Republic of Congo, including two mothballed copper mines. Metorex has offered £43m to buy a 39% stake owned by the Forrest Group and will make a R950m cash and shares offer to minorities for the rest. "We have signed the memorandum of understanding and we are moving towards finalisation, the process is going forward," he said. Metorex needs to secure either South African Reserve Bank (SARB) or National Treasury support for its initial bid for 39% of CRC, there being restrictions on South African companies holding minority stakes in offshore listed companies. "We suspect that the process may move from SARB to National Treasury as was the case with the acquisition of Pan African Resources," said Needham. Included in the first stage of the transaction is the acquisition of DRC-registered company MMK, in which the asset vest. CRC has the Kinsenda and the Mushoshi copper mines, both of which are in care and maintenance. Meanwhile, Needham said the company was still bullish on the copper price. "If you listen to what mining giants such as BHP Billiton and institutions like the Deutsche Bank and Citigroup say about commodity prices then you would not be concerned about prices and demand going forward." According to Needham, analysts have reversed their surveys for commodity prices upward in the medium term.
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