[miningmx.com] — SINCE the middle of 2010, Metorex had been approached “on numerous occasions by parties – some highly credible – interested in acquiring the company’, according to chairperson Rob Still.
Addressing the Metorex annual general meeting (AGM) in Johannesburg on Wednesday, Still said that Metorex “in late 2010 implemented a highly disciplined and professional process, under a tight legal and confidentiality regime, to allow qualified and credible parties the necessary data access to thereby facilitate any credible offer for the company to be considered by its shareholders’.
As a result of that process, Metorex received a cash offer from Brazilian resource giant Vale to acquire the company at 735c a share in April.
Still said: “With regard to the process under way to consider the Vale offer, it is important to stress that your board retains an unfettered fiduciary duty and right to consider any subsequent superior offers made by any other party.’
Asked after the meeting about market speculation over a possible counterbid by another company, Still told Miningmx: “There’s always the possibility of a competing offer being made before the cut-off date for the shareholders meeting to vote on the Vale offer.’
The date for that shareholders’ meeting has now been set for July 22 as a result of delays in completing the required circular to shareholders, which will be distributed on Friday June 17.
“July 22 was when I was supposed to be going fishing in Iceland but let’s not go there,’ Still quipped to shareholders at the meeting – none of whom raised any questions concerning the resolutions proposed at the meeting nor the future of Metorex.
Still said the interest in Metorex resulted from “its critical mass, managerial record and strategic platform to operate and develop future mines in the Copper Belt, one of the world’s most important future sources of copper and base mineral supply’.
Metorex has disposed of all its former operations in South Africa to focus on copper and cobalt mining in Zambia and the Democratic Republic of Congo (DRC), where it has developed its flagship Ruashi project.
Still said considerable progress had been made on various new development projects which included Kinsenda, the Ruashi sulphides, Lubembe and Dilala East.
He said: “A proposal for the full go-ahead with the Kinsenda project will be evaluated by your board in August 2011.
“The detailed design for the concentrator plant and tailings facility is nearing completion, as is the mine design and scheduling programme.
“Optimisation of the mine pumping infrastructure in line with higher underground water flow estimates is also under way. Capital cost estimates have increased on the back of the detailed design work and inflation.
“The new estimates will be provided to the market once the final round of the technical due diligence is completed and the project capital costs are optimised.
“The scale and funding of this relatively high-grade new Kinsenda mine will be within the sensible funding capacity of the company, given its current balance sheet and cash flows generated from existing operations.’
The writer owns shares in Metorex
