ANGLO AMERICAN ACQUIRES A 12% STAKE IN MAGMA METALS
KEY POINTS • Anglo American plc will acquire 13.47 million shares in Magma Metals at $0.60 per share for a total consideration of $8.08 million for a 12% interest in the Company (10% on a fully diluted basis). • It is planned to issue the shares and complete settlement of this transaction within five business days. • The funds will primarily be used to progress the Company’s advanced Thunder Bay North Platinum-Palladium-Copper-Nickel project in Canada. Anglo American plc, via one of its 100% owned subsidiaries, (“Anglo”) will acquire 13.47 million fully paid ordinary shares in Magma Metals Limited (“Magma”) at $0.60 per share for a total consideration of $8.08 million. Following this transaction Anglo will hold a 12% interest in Magma (10% on a fully diluted basis) and will nominate one non-executive director to Magma’s Board of Directors. Anglo will also have the right to participate in any future share placements. It is planned to issue the shares and complete settlement of this transaction within five business days. Anglo is one of the world’s largest diversified mining companies; it is a major producer of base metals and the world’s largest producer of platinum. It has significant expertise in the exploration, development and operation of large base metals and platinum-palladium projects. This expertise will be of significant benefit to Magma particularly in relation to its advanced Thunder Bay North Platinum-Palladium-Copper-Nickel project in Canada. It is planned to establish an Advisory Technical Committee which will include representatives from Anglo to provide input to the exploration and future potential development of this project. Funds from the share placement will primarily be used to complete the current 24,000m diamond drilling program at the Thunder Bay North project and to finance follow-up drilling programs and geophysical surveys designed to establish the scale and scope of the project. 1 The value of the transaction represents a 43% premium to the closing price of Magma’s shares on 9th September 2008. This investment, by one of the world’s largest resource companies, recognises in particular the significant potential of Magma’s Thunder Bay North project. Magma’s Board of Directors welcomes Anglo as a major investor in the Company and looks forward to a mutually beneficial relationship. Keith Watkins Managing Director Magma Metals Limited 2
MMB Price at posting:
42.0¢ Sentiment: Buy Disclosure: Not Held
