Opta Minerals Inc.

Opta Minerals Inc.

February 13, 2012 07:30 ET

Opta Minerals Acquires Babco Industrial Corp.

WATERDOWN, ONTARIO--(Marketwire - Feb. 13, 2012) - Opta Minerals Inc. (TSX:OPM) today announced that it has acquired all of the outstanding common shares of Babco Industrial Corp. ("Babco") located in Regina, Saskatchewan.

Babco is a profitable industrial processor and supplier of petroleum coke ("pet coke"), synthetic slag, ladle sand and crushed graphite. This acquisition complements Opta's existing product portfolio and provides for additional product line offerings to new and existing customers in the region. The Babco facility has capacity for further growth and expansion and is strategically located in proximity to its key vendors and customers.

As consideration for the acquisition of the Babco shares, Opta paid approximately $17.6 million in cash on closing, subject to customary post-closing purchase price adjustments, and is obligated to pay up to an additional $1.3 million in cash pursuant to a contingent five-year earn-out if the acquired business achieves certain future EBITDA targets. The acquisition is expected to be immediately accretive to Opta's earnings.

Babco employs approximately 25 people and is technologically advanced with respect to product and manufacturing techniques which may be leveraged at other Opta facilities. The addition of Babco further increases Opta's position in the mill and foundry business and further expands its current position as a key service provider to the North American steel industry.

David Kruse, President and CEO of Opta commented, "We are very pleased to have completed this transaction. Babco is a great strategic fit and will be easily integrated with our other mill and foundry businesses, further expanding our geographic reach and customers serviced within Canada and the United States. We welcome the employees of Babco to the Opta Minerals team."

The acquisition of Babco constitutes a "significant acquisition" for Opta and, accordingly, Opta will file a Business Acquisition Report in accordance with applicable securities laws.

About Opta Minerals

Opta Minerals Inc. is a vertically integrated provider of custom process optimization solutions and related materials for use primarily in the steel, foundry, loose abrasive cleaning and municipal water filtration industries. The company currently has production and distribution facilities in Ontario, Québec, Louisiana, South Carolina, Virginia, Maryland, Indiana, Michigan, New York, Texas, Florida, Ohio, Kosice, Slovakia, and Romans-sur-Isère, France and one of the broadest product lines in the industry.

Forward Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements as to the potential benefits to be derived by Opta Minerals from the acquisition of Babco, including potential growth and expansion opportunities to be derived therefrom, that the acquisition is expected to be immediately accretive to Opta Mineral's earnings and management's expectation that the acquired business will be easily integrated. Forward looking statements reflect the current expectations of management of Opta Minerals and are based on certain assumptions, including management's beliefs regarding the industry and markets in which Opta and the acquired Babco business operate, expectations regarding potential synergies and the integration of the acquired business and prospects for the acquired Babco business. Words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of Opta Minerals. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause Opta Minerals's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation: Opta Mineral's ability to integrate the acquired Babco business; cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; and compliance with environmental regulations; as well as the other risks identified in the "Risk Factors" section of Opta Minerals' Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. These forward-looking statements are made as of the date of this press release and, other than as required by law, Opta Minerals does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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