21 January 2016
International Ferro Metals Limited
(“IFL” or the
“Company”)
Chromite Supply
Agreement with Rustenburg Platinum Mines Limited
Further to the announcement on 29
December 2015, the Company announces that its South African
subsidiaries, International Ferro Metals (SA) (Pty) Limited
(“IFMSA”) (in business rescue) and International Ferro Metals SA
Holdings (Pty) Ltd ("IFMSAH") have entered into a settlement
agreement with Rustenburg Platinum Mines Limited ("RPM") regarding
its interests under a chromite supply agreement under which RPM is
obliged to supply UG2 chrome ore to IFMSA.
The terms of the settlement are that RPM will supply IFMSA with
10,000 tonnes of UG2 per month for calendar year 2016 at no cost
and 7,500 tonnes per month from January
2017 to November 2020 at a
cost of ZAR170 per tonne. The backlog
of approximately 57,000 tonnes at the end of December 2015 will be supplied at a rate of
10,000 tonnes per month from January
2016, also at no cost. The original contract provided for
RPM to supply 15,000 tonnes per month until November 2020 at no cost.
The settlement has eliminated the uncertainty surrounding the
supply agreement and accordingly will assist the asset sale process
currently being conducted. However it has a material impact on the
agreement's value and consequently on the value of the assets of
IFMSA. As a result, there will be a material impact on the purchase
consideration to be payable by Samancor for the assets of IFMSA.
The business rescue practitioner will propose an amendment of the
business rescue plan to the creditors of IFMSA to take account of
the settlement agreement reached in respect of the supply agreement
and the impact of the anticipated price adjustment and resultant
distribution to creditors. A meeting of creditors will be convened
to vote on the proposed amendment to the business rescue plan.
It is not expected that that the timing of the proposed
transaction with Samancor will be materially impacted.
Further announcements in relation to the business recue
proceedings will be released in due course.
- ENDS-
For further information please visit www.ifml.com
or contact:
International Ferro Metals
Limited |
Tel: +27 14 574 6302 |
Chris Jordaan, Chief Executive
Officer
Numis Securities Limited |
Tel: +44 (0) 20 7260 1000 |
James Black / John Prior / Paul
Gillam
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential
ingredient in stainless steel, from its integrated chromite mine
and ferrochrome processing operations in South Africa.
International Ferro Metals is listed on the London Stock Exchange
under the symbol IFL.
Forward Looking Statements
This announcement contains certain forward looking statements
which by nature, contain risk and uncertainty because they relate
to future events and depend on circumstances that occur in the
future. There are a number of factors that could cause actual
results or developments to differ materially from those expressed
or implied by these forward looking statements.