Contact Information: For further information, please contact: Rob Rainey in Johannesburg telephone +27 11 372-3300 Fax +27 11 454-1673 email: Refer to our website: www.energem.com Canaccord Adams Limited Robert Finlay/Andrew Chubb +44 207 050 6500
Energem -- US$3.6 Million Bridging Loan to Westhouse International Tobacco Holdings Limited
| Source: Energem Resources Incorporated
VANCOUVER, BC--(Marketwire - November 17, 2008) - Energem Resources Inc ("Energem" or "the
Company") (TSX : ENM ) (AIM : ENM ) announces that on 22 October 2008 it
advanced a short term bridging loan of US$3.6 million (the "Bridge") to
Westhouse International Tobacco Holdings Limited (formerly named McCroft
Tobacco Holdings Limited) ("Westhouse"). The Bridge is repayable on demand
and accrues interest at US$ LIBOR plus 3%. The parties intend to
renegotiate the terms of the Bridge in due course to put in place a
convertible loan (the "Term Loan") with a six month term secured over
certain of Westhouse's assets and including the right to convert into new
ordinary shares in Westhouse.
Energem has an existing investment in 7.16% of Westhouse's ordinary issued
shares. Westhouse is an integrated tobacco threshing, cigarette
manufacturing, selling and distribution company operating mainly in Africa.
The Bridge will be used by Westhouse for working capital purposes which
Energem believes will support its existing investment in Westhouse. Given
the recent sale of its final stake in its Nigerian oil storage facility,
Energem continues to have a strong cash position following the provision of
the Bridge to Westhouse.
Energem is currently discussing with Westhouse the terms of an equity
investment into Westhouse. If concluded this investment may result in the
Energem group holding a controlling interest in Westhouse. The maximum cost
of this investment would be approximately US$12 million inclusive of the
$3.6 million Term Loan, if converted. The actual amount of the equity
investment would be dependant on the extent of the take-up by other
existing shareholders of Westhouse.
Such investment is subject to finalisation of terms satisfactory to Energem
with Westhouse and its other shareholders, such regulatory and other
approvals as may be required and the completion of such due diligence on
Westhouse as is deemed necessary by Energem.
This news release contains forward-looking statements which address future
events and conditions which are subject to various risks and uncertainties.
The actual results could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, some of which
may be beyond the Company's control. These factors include: the
availability of funds; the costs and availability of product; fluctuations
in fuel product sale prices; currency fluctuations; changes in production
costs; fluctuation in shipping costs; availability of shipping; general
market and industry conditions; political and regulatory instability and
risks associated with rights to title and ownership of assets.
Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The
assumptions used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise and, as
such, undue reliance should not be placed on forward-looking statements.
Energem Resources Inc (TSX/AIM:ENM). is an Africa focussed company listed
on the Toronto Stock Exchange and on the London Stock Exchange's AIM market
and the holding company of a group of companies engaged in, mainly, several
African countries in the bio-fuels, oil and related sectors including
logistics and supply to the mining industry in South and Central Africa and
development of an up-stream oil exploration asset. The Company has offices
and/or logistics and support infrastructure in Johannesburg, London and a
number of African countries.