Ellington Investments Pte. Ltd.

December 23, 2010 10:29 ET

Ellington Investments Pte. Ltd. Announces Extension of Exchange Satisfaction Deadline and Decrease in the Number of Shares Issuable Upon Exchange of Subscription Receipts

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2010) - Pursuant to a subscription agreement (the "Subscription Agreement") dated March 31, 2010 between Ellington Investments Pte. Ltd. ("Ellington"), an indirect wholly-owned subsidiary of Temasek Holdings (Private) Limited, Inmet Mining Corporation ("Inmet") and CIBC Mellon Trust Company, as subscription receipt agent, Ellington purchased 9,258,419 subscription receipts (the "Subscription Receipts") of Inmet at a price of $54.0049 per Subscription Receipt for a total subscription price of $500 million. Each Subscription Receipt was exchangeable for no additional consideration upon satisfaction of certain conditions into 9,258,419 common shares ("Shares") of Inmet. The deadline for exchanging the Subscription Receipts was September 30, 2010 or such later date as the parties may agree. On September 29, 2010, the parties agreed to extend the deadline for exchanging the Subscription Receipts to December 31, 2010.

The parties have entered into an amendment to the Subscription Agreement dated December 23, 2010 which (i) extends the deadline for exchanging the Subscription Receipts to June 30, 2011, (ii) subject to limited exceptions, prohibits Ellington from exchanging the Subscription Receipts before 150 days have passed following a change in Panamanian Law allowing for governmental bodies or authorities to hold shares as private investors, without Inmet's consent, and (iii) reduces the number of Shares issuable upon exchange of the Subscription Receipts from 9,258,419 to 7,779,692 Shares.

Ellington purchased the Subscription Receipts for investment purposes. Following the amendment to the Subscription Agreement, upon the issuance of the underlying Shares, Ellington will beneficially own 7,779,692 Shares, representing approximately 12.64% of Inmet's issued and outstanding Shares after giving effect to the issuance of the Shares to Ellington (based on 61,549,058 Shares outstanding as of December 23, 2010). Subject to certain conditions of the Subscription Agreement and the related investor rights agreement, and depending on market conditions and other factors, Ellington may from time to time acquire additional securities of Inmet or dispose of securities of Inmet in the open market, by private agreement or otherwise.

In connection with this news release, an early warning report has been filed by Ellington in accordance with applicable securities laws. 

Contact Information

  • To obtain a copy of the early warning report, please contact
    Davies Ward Phillips & Vineberg LLP
    Jason Saltzman
    416-863-0871 (FAX)
    Davies Ward Phillips & Vineberg LLP
    1 First Canadian Place Suite 4400
    Toronto, ON M5X 1B1