Subiaco-based mineral explorer, Chrome Corporation Ltd has received an expression of interest from global investment firm York Capital Management to purchase the company's 74% interest in the Ruighoek Chrome Project in South Africa for A$45 million cash.
Chrome is considering the York expression of interest 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.
The full announcement is pasted below:
Chrome Corporation Ltd (CCI) advises that it has received an unsolicited expression of interest from York Capital Management to purchase the company's 74% interest in the Ruighoek Chrome Project in South Africa for an
acquisition price of A$45 million cash.
The price includes US$6m required for repayment of the AMCOL International Corporation (AMCOL) loan advanced to CCI under the existing sale agreement plus the absorption of AMCOL's reasonable costs and expenses which are capped at A$150,000.
The expression of interest is a non binding indicative proposal at this stage, subject to formal documentation, due diligence and shareholder approval.
The conditions precedent noted in the expression of interest are the same as those in the AMCOL offer with the exception of:
1. The offer is not subject to any financing approval;
2. The cut off date will be extended to 30th July 2008;
3. An approximately 3 week period to conduct due diligence satisfactory to York.
York has indicated it will team on this transaction with Metalmin South Africa (Pty) Ltd which has substantial experience working with mining assets in South Africa.
York is an investment firm established in 1991 which manages more than $14 billion across a number of equity and debt funds and has offices in New York, London, Hong Kong and Singapore.
Metalmin was incorporated 13 years ago and is an international trading company involved in the sourcing, supply, beneficiation and blending of minerals, metal alloys and bulk ores with offices on 3 continents.
The Company is considering the York expression of interest in light of the conditional agreement entered into with AMCOL to sell to it the Company's 74% interest in the Ruighoek Chrome Project for A$41 million, upon which shareholders are scheduled to vote at a general meeting to be held on 11 April 2008.
The Company will provide more guidance to shareholders in due course.
