ORP Origo Res. (See LSE:OPP)

 

TIDMORP TIDMOSI 
 
RNS Number : 8986S 
Origo Resource Partners Limited 
28 May 2009 
 

28 May 2009 
Origo Resource Partners Limited 
 
 
Further investment in IRCA 
 
 
Origo Resource Partners Limited ("ORP" or the "the Fund") announces a follow-on 
investment of up to US$2.5 million ("the Investment") in IRCA Holdings Limited 
("IRCA"). 
 
 
The Investment, which will be funded from ORP's existing cash resources, will 
enable IRCA to capture a number of opportunities to substantially enhance its 
growth and profitability. The Investment will be structured via an extension of 
the convertible loan stock arrangement under which Origo Sino-India PLC ("Origo" 
or "OSI") and ORP together invested a total of US$5 million in IRCA (at that 
time named IGH Limited) on a 30:70 basis, as announced on 22 April 2009. 
Following completion of the Investment ORP will have an equity interest of up to 
46% in IRCA assuming conversion of the loan stock. 
 
 
IRCA and its subsidiary companies (the "IRCA Group") will use the funds 
committed by ORP to: 
 
 
  *  Acquire a controlling stake in IRCA Middle-East (currently a 45% joint venture), 
  allowing consolidation of this business into IRCA's group accounts; 
  *  Establish a new joint venture in Saudi Arabia which will enable the IRCA Group 
  to enter the oil-service industry in conjunction with an established local 
  partner; 
  *  Assume 100% ownership of IRCA India, which provides software, allowing the IRCA 
  Group to reduce software development fees and increase its intellectual property 
  base; 
  *  Establish a risk management consultancy offering through the expansion of the 
  existing IRCA India business; and 
  *  Undertake various growth initiatives. 
 
 
 
Commenting on today's announcement, Chris Rynning, Executive Director of ORP 
said: 
 
 
"We are confident that a significant opportunity exists for IRCA to expand its 
business in the fast growing Middle Eastern market whilst also increasing its 
footprint in the higher margin software sector. 
 
 
"I am delighted that we are continuing to build upon the close relationship we 
have established with IRCA with the goal of delivering returns to ORP's 
shareholders." 
 
 
ENDS 
 
 
Further information: 
 
 
+-------------------------------------------------+------------------------------+ 
| Origo Resource Partners                         | +86 1390 124 6417            | 
| Chris Rynning                                   | +86 1351 106 1672            | 
| Niklas Ponnert                                  |                              | 
|                                                 |                              | 
+-------------------------------------------------+------------------------------+ 
| Nominated Adviser:                              | +44 20 7131 4000             | 
| Smith & Williamson Corporate Finance Limited    |                              | 
| Azhic Basirov                                   |                              | 
|                                                 |                              | 
+-------------------------------------------------+------------------------------+ 
| Broker:                                         | +44 20 3100 2223             | 
| Liberum Capital Limited                         |                              | 
| Simon Atkinson                                  |                              | 
|                                                 |                              | 
+-------------------------------------------------+------------------------------+ 
| Public Relations:                               | +44 20 7321 0000             | 
| Aura Financial                                  |                              | 
| Andy Mills / Nina Legge                         |                              | 
|                                                 |                              | 
+-------------------------------------------------+------------------------------+ 
 
 
Notes to editors: 
 
 
IRCA 
 
 
  *  IRCA aims to become the leading global provider of operational and environmental 
  risk management solutions to industry, focused on the mining, 
  power, construction and manufacturing industries and on the public sector. 
 
 
 
  *  The IRCA Group will comprise a network of 15 subsidiaries across 5 
  continents. IRCA is actively seeking to expand its international roll-out, both 
  organically and by acquisition, in the key Asia Pacific, South American and 
  Middle East markets. 
 
 
 
  *  In China specifically, the demand for operational and environmental risk 
  management  services is largely driven by legislative compliance and mandatory 
  budget allocations. IRCA expects recent legislative changes in that market to 
  represent a significant growth opportunity in the years ahead. 
 
 
 
  *  The businesses of the IRCA Group achieved, on a pro forma basis for the 
  financial year ended 31 December 2008, revenues of approximately $19 million, 
  pre-tax losses of approximately $0.8 million, including approximately $0.7 
  million of one-off costs, and had net liabilities at year end of approximately 
  $0.2 million. The directors of IRCA expect the IRCA Group to experience revenue 
  growth in the 2009 financial year and to be profitable. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCCKOKDQBKDNPB 
 

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