CMM Commoditrade

RNS Number:0893B
Corvus Capital Inc
06 April 2006







6 April 2006

                         Corvus Capital Inc ("Corvus")



                  Re: Commoditrade Inc - Proposed Acquisition

Corvus holds 76.07 per cent of the issued share capital of Commoditrade Inc. 
("Commoditrade") which has announced today that it has conditionally agreed to
acquire Tambelan Company Limited's interest in its contract with Sucden (UK)
Limited, a UK based commodities trading firm ("the Brokerage"), in respect of
metals trading by the Brokerage's LME Trading Team on the London Metal Exchange.



Summary points of the Proposed Acquisition (the "Acquisition") and Placing by
Commoditrade (together the "Proposals"):

*  Commoditrade has agreed to acquire Tambelan's interest in its contract
   with the Brokerage ("Tambelan Agreement") for an initial aggregate 
   consideration of #24.4 million, to be satisfied as to the payment of 
   #14 million in cash and by the issue of 83.4 million new ordinary shares 
   in the capital of Commoditrade.  In addition, 6 million deferred 
   consideration shares may be issued on the achievement of certain performance 
   criteria. The Acquisition is conditional upon, inter alia, upon the approval 
   of Commoditrade.

*  The acquisition will allow Commoditrade to receive 75 per cent. of the
   trading profits (after certain expenses) attributable to the LME Trading 
   Team.

*  Gross profits attributable to the Tambelan Agreement have grown over the 
   last three years to #7.1 million in the year ended 31 December 2005.

*  The LME Trading Team is well established and successful, with an in-depth 
   knowledge of the markets on which it is represented and has developed
   strong client and market relationships.

*  Placing by Commoditrade of 144,000,000 new Ordinary Shares with
   institutional investors at 12.5 pence per share. to satisfy the cash
   consideration in respect of the Acquisition, and to provide working capital 
   for the Enlarged Group.  The Placing is expected to raise #18 million gross
   (approximately #15.2 million net of expenses).

*  Following completion of the Proposals Corvus will remain interested in
   78.5 million ordinary shares, representing 21.14 per cent. of the enlarged 
   share capital of Commoditrade.



Graham Porter is the sole shareholder of Tambelan and is also the Executive
Chairman of Corvus, which in turn holds 76.07 per cent. of the entire issued
share capital of Commoditrade  Accordingly, the Acquisition is classified as a
related party transaction under the AIM Rules. Graham Butt, a Director of
Corvus, is also deemed to be interested in the Acquisition by virtue of his
position as a trust officer of Rampart Management Inc, a company associated with
Graham Porter. The Independent Directors (being those Directors other than
Graham Porter and Graham Butt who are not deemed to be independent for the
purposes of the Acquisition) consider, having consulted with Strand Partners
Limited, that the terms of the Acquisition Agreement are fair and reasonable in
so far as shareholders are concerned. In providing its advice to the Independent
Directors, Strand Partners Limited has taken into account the Independent
Directors' commercial assessments of the Acquisition.

A copy of the admission document to be sent to Commoditrade shareholders today
is available at www.commoditrade.net

Commenting, Andrew Regan, Chief Executive of Corvus Capital Inc, said:

"We believe the proposed acquisition will deliver value to all stakeholders in
the business and we are delighted to see such a strong level of support from
institutional investors in the placing which was oversubscribed."



Enquiries: John Bick      tel: 0870 389 6999



ends


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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