Subiaco-based Chrome Corporation Ltd has received an unsolicited $51 million offer to buy its interest in a chrome project in South Africa.
A Chrome statement is pasted below:
Chrome Corporation Limited ("CCI") advises that it has received an unsolicited letter of intent from Medway Finance Limited ("Medway") to purchase the Company's 74% interest in the Ruighoek Chrome Project in South Africa for an acquisition price of A$51 million cash. The letter of intent is a non binding indicative proposal at this stage, subject to formal documentation, due diligence and shareholder approval.
CCI has contacted Medway to ascertain its credentials and ability to complete a transaction of this type and size.
Consideration of the Medway letter of intent will be dealt with expeditiously in light of the conditional agreement entered into with AMCOL International Corporation to sell to it the Company's 74% interest in the Ruighoek Chrome Project for A$41 million ("AMCOL Transaction"), upon which shareholders are scheduled to vote at a general meeting to be held on 30th June 2008 ("General Meeting").
CCI also wishes to inform the market that in the last 48 hours it has received new unsolicited approaches by two unrelated chrome industry participants to be given access to confidential statutory and technical data with a view to formulating an expression of interest to purchase the Ruighoek Chrome Project.
The Company will keep shareholders fully informed regarding the status of the Medway proposal and any further expressions of interest received. At this stage, the General Meeting to approve the AMCOL Transaction remains on schedule.
