PMHL Prosperity

TIDMPMHL

RNS Number : 5808H

Prosperity Minerals Holdings Ltd

21 June 2013

21 June 2013

Prosperity Minerals Holdings Limited

("Prosperity" or "the Company")

Update in relation to proposed investment in Malaysian iron ore

Reference is made to announcements on 21 December 2012 and 1 March 2013 regarding the new agreement (the "New Agreement") detailing the proposed investment in a Malaysian iron ore operation, Billion Win Capital Limited ("BWC"), alongside Prosperity International Holdings (H.K.) Limited ("PIHL"), the Company's majority shareholder. As per the New Agreement, if PIHL did not complete its acquisition of BWC by 30 June 2013, the US$7 million deposit would be refunded to Prosperity by 30 September 2013. Under a Supplemental Agreement entered into today, this deadline has been extended by three months so that PIHL is given up to 30 September 2013 to complete its acquisition of BWC or the US$7 million deposit will be refunded to Prosperity by 31 December 2013.

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.

Unless otherwise specified, the capitalised terms used in this announcement have the same meaning as those defined in the announcement dated 21 December 2012 and 1 March 2013.

Further enquiries:

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

Notes to Editors:

Prosperity (AIM: PMHL) is:

- an iron ore operator and investor 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 Ceará in the north east of the country.

Prosperity has operated a real estate investment and development division since February 2010 which is focused on creating an attractive portfolio of PRC property and development assets. The Company has also entered into a number of agreements with partners to develop residential, commercial and recreational projects principally in Guangzhou City and Changzhou City in the southern PRC. Prosperity also owns an interest 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

END

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