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Central Afr. Min&Exp (CFM)

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Thursday 07 February, 2008

Central Afr. Min&Exp

DRC Update

Central African Mining&Exploration
07 February 2008


                Central African Mining & Exploration Company Plc
             Index: AIM / Epic: CFM / Sector: Mining & Exploration


7 February 2008


                Central African Mining & Exploration Company Plc
                           ('CAMEC' or 'the Company')

                                   DRC Update


CAMEC, the fully integrated exploration, mining and production company, is
pleased to announce an update on its activities in the Democratic Republic of
the Congo ("DRC") and the development of its concession areas in the Katanga
Province.


On the 7th November 2007, CAMEC announced an agreement to establish a new joint
venture company (the "JVC") with Prairie International Limited, a company in
which a Trust for the benefit of members of the family of Dan Gertler is a major
shareholder ("Prairie"). Under the terms of this agreement, the JVC, through a
new subsidiary in the DRC, will own, operate and develop Mukondo Mountain (which
the directors believe to be the richest Cobalt mine in the world) as well as the
mining concession areas previously known as C17, C18, C19 and C21 in the central
Katanga region of the DRC. The JVC will also control the copper cobalt SX/EW
facility at Luita and the Kakanda cobalt concentrator.


Completion of the JVC remains subject to relevant conditions announced at the
time and is expected during February 2008. Following completion of the JVC, and
in order to strengthen the relationship between the parties and give CAMEC's
shareholders more direct access to the value creation in the DRC, it is proposed
that CAMEC will acquire Prairie's 50% stake in the JVC (the "Proposed
Transaction").


Under the terms of the Proposed Transaction, Prairie will receive 815,000,000
new ordinary shares in CAMEC, representing approximately 39.9% of its enlarged
share capital, as consideration for Prairie's 50% stake in the JVC. The Proposed
Transaction is subject to the completion of the previously announced Joint
Venture agreement, a waiver from the obligation to make an offer pursuant to
Rule 9 of the Takeover Code from the Panel on Takeovers and Mergers, and the
agreement of CAMEC shareholders. A notice convening an Extraordinary General
Meeting of CAMEC's shareholders, in order to seek approval of the proposed
transaction, will be issued once the conditions to the Joint Venture agreement
have been satisfied.


CAMEC is also pleased to announce that, in anticipation of the positive
completion of the JVC, the two parties have recommenced operations at Mukondo
Mountain. The parties now also intend to accelerate their investment programme
to further develop Mukondo Mountain, the Luita plant, as well as the mining
concession areas previously known as C17, C18, C19 and C21. Cobalt production
from Mukondo is now underway and the Kakanda concentrator is being reopened. The
parties have agreed an initial monthly production target from Luita and the
Kakanda concentrator of 400 tonnes of cobalt metal contained. This target will
rise to 1,000 tonnes per month by the year end.


CAMEC Chief Executive Officer Andrew Groves said, "We are delighted to be
strengthening our relationship with Prairie in this way. We believe that
significant value will be created for CAMEC and its shareholders through this
much closer working relationship with Dan Gertler, one of the leading and most
successful investors in DRC, and we are delighted at the opportunity to have
Prairie as a major long term shareholder in CAMEC."


                                  ** E N D S**


For further information please visit www.camec-plc.com or contact:

Phil Edmonds        CAMEC                              Tel: 0845 108 6060
Andrew Groves       CAMEC                              Tel: 0845 108 6060
Jonathan Wright     Seymour Pierce Ltd                 Tel: 020 7107 8000
Ben Brewerton       Financial Dynamics                 Tel: 020 7831 3113
Hugo de Salis       St Brides Media & Finance          Tel: 020 7242 4477




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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