SOURCE: MMX Mineracao e Metalicos S.A.

MMX Mineracao e Metalicos S.A.

June 23, 2009 12:04 ET

MMX: Wuhan Steel Delivers Non-Binding Offer to MMX

MATERIAL FACT

RIO DE JANEIRO, BRAZIL--(Marketwire - June 23, 2009) - Further to the Material Fact published on May 19, 2009, and in compliance with the regulations issued by the Comissão de Valores Mobiliários ("CVM"), MMX Mineração e Metálicos S.A. (BOVESPA: MMXM3) ("MMX") announces that it has received from Wuhan Iron and Steel Co. ("WISCO") a non-binding offer (the "NBO") pursuant to which WISCO would acquire a minority equity participation in MMX and its subsidiary MMX Sudeste Mineração S.A. ("MMX Sudeste").

In accordance with the terms of the NBO, WISCO would purchase, by means of a new issue of MMX common shares, a 9.09% participation in MMX for a total price of US$120 million, and would further acquire a 23% equity interest in MMX Sudeste, by means of a new share issue, for the purchase price of US$280 million.

MMX intends to work closely with WISCO towards completing the transaction contemplated in the NBO in the shortest time possible, and would simultaneously negotiate a bankable long-term off-take agreement for the supply of iron ore by MMX Sudeste to WISCO.

The NBO is non-binding in nature, and, therefore, both WISCO and MMX have the right to withdraw from and discontinue the transaction until a mutual and binding agreement is reached.

MMX MINERAÇÃO E METÁLICOS S.A.
CNPJ/MF: 02.762.115/0001-49
Publicly Held Company
NIRE: 33.3.0026111-7

Contact Information

  • Contact Information
    Chequer Hanna Bou-Habib
    Commercial Director and IR Officer
    Tel: (21) 2555-5558 / 2555-5234
    ri@mmx.com.br