4 July 2011Advanced Magnesium Limited (AML) acquires Magontec...

4 July 2011
Advanced Magnesium Limited (AML) acquires Magontec Group (Magontec);
A leading global magnesium alloy and anode manufacturer
? AML has entered into an agreement to buy 100% of Varomet Holdings Limited, the holding
company for Magontec, for A$5.595m (US$6.0m) from Straits Mine Management Pty Ltd, a
subsidiary of Straits Resources Limited (ASX Code: SRQ), effective from 1 July 2011.
? Magontec owns 4 magnesium alloy and anode manufacturing and recycling plants in Europe
and China and sells their products throughout the World.
? AML?s combined Chinese and European magnesium alloy manufacturing capacity is now in
excess of 60,000 metric tonnes per annum.
? If the current business plans of HNKWE and Magontec for the next 12 months are realised,
AML is expected to post FY2012 Comprehensive Income in a range of A$2.0m to A$2.5.
Nicholas Andrews, Executive Chairman of Advanced Magnesium Limited said ?the acquisition of
Magontec provides AML with the opportunity to combine a World class magnesium technology
portfolio with one of the Worlds leading magnesium alloy manufacturing businesses. AML now has a
very exciting and profitable future in a growth sector of the metals industry?.
Milan Jerkovic, CEO of Straits Resources Limited said, ?Straits is not the natural owner of the
Magontec business. We are pleased to see Magontec become part of a bigger and more broadly based
magnesium investment structure. We believe that the future equity value of Magontec will be better
developed in this new vehicle?.
Yours sincerely