Eurasian Natural Resources Corporation Plc or ‘ENRC’ (ENRC.L) announced the proposed private acquisition by its wholly owned unit, ENRC Congo BV, of the remaining 49.5% of shares of Camrose Resources Ltd., and the outstanding minority shareholdings in certain Camrose subsidiaries, for $550 million cash. The transaction may be complete by December 28, 2012.
The Group anticipates that Camrose’s assets would generate significant profits and positive cash-flows when development is complete. Also, ENRC would benefit from increased operational synergies across its regional copper and cobalt operations, including the optimisation of material flows, the ability to leverage ENRC’s existing marketing organisation, and the eventual integration of the processing plants associated with the Roan Tailings and Reclamation Project and other ENRC processing facilities and the Camrose Group’s extraction licences.
Near-term production potential from the Camrose assets is nearlt 100 thousand copper contained tonnes per annum, with capital expenditure in 2013 projected at some $300 million. The rest of 49.5% of Camrose and a 50% holding in Daletona Properties Ltd. would be purchased from Cerida Global Ltd., while the outstanding minority stake in Comide would be acquired indirectly through Cerida, as well as from Straker International Corp. Further, ENRC Congo BV would also acquire one issued share in each of Akam Mining Sprl and Simplex Holding Sprl, which are divisions of Camrose, from Medard Palankoy.
As a result of the purchase, Comide would be indirectly wholly owned by ENRC. Upon completion, Metalkol would remain 30% owned by DRC state-owned entities and Gécamines would continue to hold the minority 25% stake in Swanmines.
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by RTT Staff Writer
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