6 July 2017
International Ferro Metals Limited
(“IFL” or the “Company”)
Department of Mineral Resources
Approval of Lesedi Mining Right Transfer
Further to the announcement released by the Company on
1 November 2016, IFL announces that
the Department of Mineral Resources has approved the transfer of
IFL’s South African subsidiary International Ferro Metals (SA)
(Pty) Limited’s (“IFMSA”) Lesedi mining right to Samancor Chrome
Limited (“Samancor”). The purchase consideration of ZAR140 million will become payable by Samancor
upon registration of the cession of the Lesedi mining right at the
Mineral and Petroleum Titles Registration Office, which is expected
to take four to eight weeks. The proceeds will be distributed to
creditors of IFMSA in accordance with the amended business rescue
plan.
The remaining transaction, for which conditions are in the
process of being fulfilled, is for the sale of IFL’s 80% equity
interest in Sky Chrome Mining (Pty) Limited (“Sky Chrome”) for
ZAR100 and IFMSA’s claims against Sky
Chrome for ZAR70 million.
The outstanding conditions include obtaining regulatory
approvals, specifically ministerial approval for the transfer of
the Sky Chrome mining right, and consents of other parties to
certain material contracts, which are usual for transactions of
this nature.
The Company reiterates that it is not likely that IFL
shareholders would receive any distribution from the conclusion of
the business rescue process.
Further announcements in relation to the Business Rescue process
will be released in due course.
- ENDS-
For further information please visit http://www.ifml.com/ or
contact:
International Ferro Metals Limited
Jannie Muller, Finance
Director
+27 82 785 1364
Wayne Kernaghan, Company
Secretary +61 407
233 153
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential
ingredient in stainless steel, from its integrated chromite mine
and ferrochrome processing operations in South Africa.
International Ferro Metals is listed on the London Stock Exchange
under the symbol IFL.
Forward Looking Statements
This announcement contains certain forward looking statements
which by nature, contain risk and uncertainty because they relate
to future events and depend on circumstances that occur in the
future. There are a number of factors that could cause actual
results or developments to differ materially from those expressed
or implied by these forward looking statements.