Central African Mining & Exploration Company Plc

Central African Mining & Exploration Company Plc

May 04, 2007 12:08 ET

Central African Mining & Exploration Company Plc Enters Into Agreement to Acquire Additional Shares of Katanga Mining Limited

LONDON, UNITED KINGDOM--(CCNMatthews - May 4, 2007) - Central African Mining & Exploration Company Plc ("CAMEC" or the "Company"), the AIM listed fully integrated exploration, mining, trading and investment company, is pleased to announce that it has entered into private agreements with select shareholders of Katanga Mining Limited ("Katanga"), pursuant to which CAMEC has agreed to acquire an additional 8,298,300 common shares of Katanga. Based on publicly available information, such shares represent 10.63% of the currently outstanding common shares of Katanga. These share purchase transactions are expected to close on 18 May 2007. Upon closing, taking into account the shares of Katanga currently held by CAMEC and those Katanga shares expected to be acquired pursuant to the share purchase transaction announced by the Company on April 27, 2007, CAMEC will own a total of 17,175,130 common shares of Katanga which, based on publicly available information, will represent 22% of the currently outstanding common shares of Katanga.

In addition, CAMEC has agreed in principle to acquire by private agreement from select shareholders of Katanga a further 6,000,000 common shares of Katanga representing, based on publicly available information, 7.68% of the currently outstanding common shares of Katanga, and anticipates formal agreements to be finalised shortly.

Katanga is a Toronto Stock Exchange listed company, which is currently focusing on the development of copper-cobalt projects in the Katanga Province of the Democratic Republic of the Congo ("DRC").

CAMEC Chairman Phil Edmonds said, "The DRC is blessed with unparalleled natural resources including those in the copper and cobalt sectors. CAMEC itself has some of the most highly prospective concessions in the country, while the Katanga concessions are estimated to host major copper and cobalt reserves and resources.

"CAMEC feels that with the growing stability in the DRC following recent democratic elections and an improved 2004 mining code and the right investment, the DRC has all the attributes rapidly to become a major exporter of copper and cobalt finished product.

"CAMEC has already within the last 12 months developed a 50,000 sq metre copper cobalt SX/EW plant in the DRC and is on track to produce 40,000 tonnes of electro plated copper in 2007-08 with 6,000 tonnes of cobalt in finished metal and carbonate form. The plant has a targeted template design capacity to produce 100,000 tonnes copper metal and up to 12,000 tonnes of cobalt cathode and carbonate annually by 2008-09."

As part of the consideration, CAMEC will issue 74,742,854 new ordinary shares of 0.1p each in the Company. Application will be made for the admission of the new ordinary shares to trading on the AIM market. The new ordinary shares will rank pari passu with the existing ordinary shares of 0.1p each in the Company and dealings in these new ordinary shares are expected to commence on 18 May 2007.

The Katanga shares are being acquired for investment purposes. CAMEC may in the future increase or decrease its ownership of securities of Katanga from time to time depending upon factors such as the business and prospects of Katanga and future market conditions

A copy of the "early warning" report to be filed on SEDAR under applicable Canadian securities laws in connection with this news release, will be available by contacting Philip Enoch, the Secretary of CAMEC, at +44 207 429 6129.

CAMEC's address is 3rd Floor, Millennium Bridge House, 2 Lambeth Hill, London, United Kingdom, EC4V 4AJ.

For further information please visit www.camec-plc.com.

Notes:

CAMEC is an AIM quoted, fully integrated exploration, mining, trading and investment company focussed in Africa with a market capitalisation of circa GBP650 million. The Company's operational areas include the DRC, Mozambique, South Africa, Angola, Mali, and Zimbabwe.

The primary revenue driver for the Company is the mining and production of copper and cobalt in the DRC. Its flagship operation is the Luita metallurgical facility which in the financial year 2007-8 is expected to produce, at an annualised rate, 40,000 tonnes of copper cathode and 6,000 tonnes of cobalt cathode and carbonate. The plant has a targeted template annual capacity of 100,000 tonnes of copper cathode and 12,000 tonnes of cobalt cathode and carbonate in the financial year 2008-9, which will make it the largest under-roof facility of its kind in Africa. Luita is supplied by mines on the highly prospective 467, 469 (previously named C19 & C21) concession areas which Gecamines, the DRC national mining company, has estimated to contain circa 1.5 million tonnes of copper and 500,000 tonnes of cobalt. These are currently being drilled to JORC status.

Listed on AIM in October 2002, the Company also has exploration, investment, agricultural, trading and development activities which have solidified its reputation of achieving in Central and Southern Africa. The Company, amongst others, has a fluorspar and a platinum project in South Africa, a coal projects and agricultural trading operation in Mozambique, a bauxite operation in Mali and importantly owns a major southern African trucking and logistics business which is crucial for conducting business in Africa. It was instrumental in enabling the US$ 150 million Luita facility to be built in less than 12 months.

CFM / Index: AIM / Sector: Mining & Exploration

Contact Information

  • CAMEC
    Andrew Groves
    0845 108 6060
    Website: www.camec-plc.com
    or
    Seymour Pierce Ltd
    Jonathan Wright
    020 7107 8000
    or
    St Brides Media & Finance Ltd
    Hugo de Salis
    020 7242 4477