TIDMLOND
RNS Number : 9903V
London Mining Plc
03 November 2014
News release
Date For immediate release
Contact
David Jetuah, media relations
, PwC
Tel: 020 72121812, Mobile:
07531439437
e-mail: david.jetuah@uk.pwc.com
Pages 2
London Mining plc in administration- UPDATE ("London Mining" or
"the Company")
After a very challenging period for London Mining, the joint
administrators are pleased to announce that the sale of the
Company's Marampa Mine in Sierra Leone has been successfully
concluded.
This follows last week's recent announcement of terms being
agreed with Timis Corporation to purchase the Company's mining
assets.
The administration team's key objective centred on finding a
rapid resolution for the Company's long term future despite the
uncertainties created by the lack of liquidity and slump in iron
ore prices.
Against this backdrop, and alongside a limited amount of
credible interest, the joint administrators identified Timis
Corporation as the best bid, placing emphasis on Timis
Corporation's track record in western Africa and a personal
commitment to be part of the solution by securing the support of
several Sierra Leone ministries who helped ensure the deal
completed quickly. That support has been expressly guaranteed by
the President of Sierra Leone, the Minister of Mines and Mineral
Resources, the Minister of Finance and EconomicDevelopment, and the
National Revenue Authority.
However, there was no alternative but to deliver the sale
through a 'prepack' structure which will see some creditors take
losses on their indebtedness.
All staff at the mine will see their employment continue with
Timis Corporation. Had this transaction not taken place, the mine
was hours away from closing, which would have resulted in far more
significant losses being suffered by stakeholders, and especially
the local community.
Peter Dickens, joint administrator of London Mining plc and
director at PwC, said:
"This is a great outcome, not only for the Marampa Mine
workforce transferred to Timis as part of the deal, but also in
terms of protecting a key asset in Sierra Leone's economy,
contributing around 10% of the country's GDP.
"I am delighted that PwC has been able to bring together
management, lenders, advisers, the Sierra Leone government and
Timis Corporation, all of whom were committed to completing this
critical transaction for the Marampa Mine and its workers, which
sees the mine's long-term future assured.
"Saving the mine at this difficult time for Sierra Leone was a
major priority. The Company's important efforts relating to Ebola
treatment will also continue to be maintained."
Frank Timis, Chairman of the Timis Corporation commented:
"Timis Corp is delighted that we have completed the purchase of
the Marampa Mine from the receivers, which secures the future of
the mine and its employees, and preserves a major source of revenue
for the government of Sierra Leone. Timis Corp has provided working
capital financing for $70m to Timis Mining Corp (SL) Ltd which will
allow the mine to quickly ramp up to profitability.
"It is especially pleasing to have received a confirmation of
the government's support for the purchase and transfer of the mine
and assets from the His Excellency the President the Honourable Dr
Ernest Bai Koroma, the Minister of Mines and Mineral Resources the
Honourable Minkailu Mansaray, the Minister of Finance and Economic
Development Dr Kaifala Marah, and the Commissioner General of the
National Revenue Authority Madam Haja Kallah-Kamara. We are also
pleased to confirm that the Board of African Minerals has approved
access to the rail and port infrastructure for the export of 6
million tonnes per annum of Marampa's iron ore product, subject to
final completion of commercial terms and any regulatory
approvals."
"I am also pleased to have secured exclusive access to a further
100 million tonnes of weathered hematite iron ore through agreement
with Cape Lambert Resources, allowing the current plants to process
consistent quality material for the next decade, and deferring the
capital expenditure that would have been required to access fresh
ore at Marampa."
ENDS
For more information, please contact:
Ian Hannam/Neil Passmore/Andrew Chubb
Hannam & Partners LLP +44 (0) 207 907 8500
Jos Simson/Mike Bartlett/Nuala Gallagher
Tavistock +44 (0) 207 920 3150
Notes to editors:
1. On 16 October 2014, Russell Downs and Peter Dickens were
appointed as joint administrators of London Mining PLC (UK) to
manage their affairs, business and property as their agents and
without personal liability. Russell Downs and Peter Dickens are
licensed in the United Kingdom to act as insolvency practitioners
by the Institute of Chartered Accountants in England and Wales.
2. The joint administrators are Data Controllers of personal
data as defined by the Data Protection Act 1998.
PricewaterhouseCoopers LLP will act as Data Processor on their
instructions. Personal data will be kept secure and processed only
for matters relating to the Administration.
About PwC
PwC helps organisations and individuals create the value they're
looking for. We're a network of firms in 157 countries with more
than 195,000 people who are committed to delivering quality in
assurance, tax and advisory services. Find out more and tell us
what matters to you by visiting us atwww.pwc.com
PwC refers to the PwC network and/or one or more of its member
firms, each of which is a separate legal entity. Please see
www.pwc.com/structure for further details.
(c) 2014 PricewaterhouseCoopers. All rights reserved.
About Timis Corporation Limited
Timis Corporation is a private company founded and Chaired by
Frank Timis. Timis Corporation has an extensive portfolio of
businesses in the mining, oil & gas, life sciences and
agricultural industries. Core holdings include African Minerals,
African Petroleum, International Petroleum, Pan African Minerals
and London Pharma amongst others.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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