20th Oct 2009 09:00
20 October 2009
Strategic Natural Resources plc
("SNR" or the "Company")
End of talks and termination of Offer Period
The Board of SNR announces that it has been unable to agree terms for Atlantic Coal plc ("Atlantic") to proceed with a recommended offer for SNR and accordingly talks between the two companies in relation to an offer have now ended. Therefore, SNR is no longer in an Offer Period, as defined under the City Code on Takeovers and Mergers.
On 28 October 2008, SNR announced that its 74% owned subsidiary, Elitheni Coal (Pty) Ltd had agreed a 25 year coal supply agreement with IPSA Group plc ("IPSA") for the supply of 1 Million tonnes of Elitheni coal per annum for a proposed 250 MW power plant to be established and operated by IPSA at Elitheni. On 9 October 2009, IPSA announced that it is proceeding with the environmental impact assessment for the mine mouth power plant and has taken an option on a site for the power plant located adjacent to SNR's Elitheni Mine. IPSA intends to develop the plant based on a perceived shortage of electricity generation capacity in the South African market.
In the light of this development and its own initiatives in the steam boiler and coal export markets, the Board of SNR feels it cannot recommend any offer which does not recognise the strategic nature of Elitheni's 97 million tonnes of in situ coal.
For further information contact:
The Company: Jeremy P. Metcalfe, Chief Executive Strategic Natural Resources plc Tel: +44 (0) 1303 874 798
Nominated Adviser: Rod Venables/James ReeveAllenby Capital Limited Tel: +44 (0) 203 328 5656
Related Shares:
SNRP.LAtlantic CoalIPSA.L