TIDMPMHL

RNS Number : 9916Y

Prosperity Minerals Holdings Ltd

01 March 2013

1 March 2013

Prosperity Minerals Holdings Limited

("Prosperity" or "the Company")

Update in relation to proposed investment in Malaysian iron ore

Further to the announcement on 21 December 2012 regarding the new agreement (the "New Agreement") detailing the proposed investment in a Malaysian iron ore operation alongside Prosperity International Holdings (H.K.) Limited ("PIHL"), the Company's majority shareholder, the Company has agreed with PHIL a slight amendment to the terms (the "Supplemental Agreement"). Previously, the US$6 million deposit paid by the Company could have been converted into a US$6 million zero coupon exchangeable bond. Under the terms of the Supplemental Agreement, the Company has decided that it will not exercise its right to convert the bond and hence, whether or not the deal completes, the US$6 million deposit will now be returned in cash.

Completion of the New Agreement remains subject to various conditions including receipt of a satisfactory Competent Person's report and a satisfactory Independent Valuation by Jones Lang LaSalle Corporate Appraisal and Advisory Limited. Furthermore, as the transaction is a related party transaction under the AIM Rules, completion is also conditional on the approval by the Company's Independent Directors, having taken advice from Daniel Stewart & Company plc., the Company's Nominated Advisor. Completion of the New Agreement is also a substantial transaction for Prosperity under the AIM Rules.

The capitalised terms used in this announcement have the same meaning as those defined in the announcement dated 21 December 2012.

 
 Prosperity Minerals Holdings Limited 
  Patrick Li 
  Neelke Kruger-Logan                    +852 3187 2618 
 Citigate Dewe Rogerson 
  Martin Jackson                         +44 (0) 20 
  Priscilla Garcia                        7638 9571 
 Daniel Stewart & Company plc 
  Corporate Finance: Paul Shackleton, 
  Antony Legge, Emma Earl                +44 (0) 20 
  Corporate Broking: Martin Lampshire     7776 6550

Notes to Editors:

Prosperity (AIM: PMHL) is:

- an iron ore trading business serving the PRC;

- a specialised real estate owner and developer in the same market; and

- an investor in two cement plants, also in the PRC.

Prosperity's iron ore trading business has been operating since 1992 and sources iron ore, for shipment and use in the PRC, from major international iron ore producers in South Africa, Brazil, Australia and South East Asia, Thailand and Malaysia in particular. The majority of the Company's iron ore is sold to large steel manufacturers in the PRC. In the fiscal years ended 31 March 2011 and 2012, Prosperity shipped 6.3 million tonnes and 4.8 million tonnes of iron ore respectively. In December 2010, Prosperity acquired a 35% effective interest in United Goalink Limited (UGL), a Brazilian mining operation which owns approximately 600 square kilometres of exploration rights and 3 square kilometres of mining concession in the State of Ceara. In the year ended 31 March 2012, UGL shipped 218,808 tonnes of iron ore.

Prosperity has operated a real estate investment and development division since February 2010 which is focused on creating a portfolio of PRC property and development assets with good upside potential and manageable risk. The Company has entered into a number of agreements with its partners to develop recreational, commercial and residential projects in Guangzhou City and Changzhou City in the southern PRC and Hangzhou City in the east. Prosperity also acquired interests in an existing commercial building in Guangzhou, which is a regional capital and is located in the Pearl River Delta, the foremost economic zone in the southern PRC.

Prosperity has two investment associates in the cement manufacturing industry in the PRC. The Company holds a 33.06% interest in Anhui Chaodong Cement Company Limited (ACC), located in Anhui Province in the eastern PRC. The designed sellable production capacity of ACC is 5.1 million tonnes of cement and clinker per annum. In addition, Prosperity owns 16.11% of TCC Liaoning Cement Company Limited which has a designed saleable production capacity of 2 million tonnes of cement and clinker per annum. As announced on 6 February 2013, this latter shareholding is the subject of a conditional sale and purchase agreement.

The PRC is the World's second largest economy (behind the US) and the biggest buyer of iron ore; it is also the largest producer and consumer of cement.

This information is provided by RNS

The company news service from the London Stock Exchange

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