29th May 2007 07:02
Aricom PLC29 May 2007 Press Release 29 May 2007 Aricom plc ("Aricom" or "the Group") IFC Proposes Equity Investment Aricom plc (AIM: TIO), the Anglo-Russian developer of mineral resources, todayannounces that it has agreed the investment from the International FinanceCorporation ("IFC") of US$20m by them subscribing for 17,076,372 new Aricomshares and them being granted an option to subscribe for a matching amount ofadditional new shares. The proposed investment was announced in March 2007,subject to further due diligence and approval by the IFC's Board. IFC's duediligence included an environmental and social review which found Aricom'sprojects consistent with IFC's Performance Standards and World Bank guidelinesand the IFC Board has approved the investment. Investment IFC is subscribing for 17,076,372 new shares at the share price prior to theoriginal announcement on 20 March 2007 of UK£0.59 per share (the "InvestmentPrice"). The new shares will be ordinary shares in Aricom ranking pari passuwith all existing ordinary shares then in issue. At the same time Aricom isgranting IFC an option to subscribe for 17,076,372 shares at an exercise pricewhich is at of UK£0.74 per share (a 25% premium to the Investment Price subjectto an anti-dilution adjustment). The option is exercisable for a period of twoyears commencing on the date which Aricom notifies the IFC of aggregate grossrevenue from operations since inception of Aricom exceeding US$40m on aconsolidated basis (the "Option Trigger Date"). If at any time following theOption Trigger Date the shares trade at a 60% premium to the Exercise Price theexpiry date for exercise of the option will reduce to 90 days.At any time afterthe second anniversary of the Option Trigger Date, if the shares trade at a 30%premium to the exercise price the expiry date for exercise of the option willalso be reduced to 90 days. IFC is the private sector arm of The World Bank Group. IFC is a substantialprovider of finance to companies in Russia in a wide range of sectors, includingmining. Application will be made today for the admission of the above mentioned17,076,372 ordinary shares to trade on AIM and dealings in these shares areexpected to commence on 4 June 2007. Jay Hambro, Chief Executive, said: - "I am delighted that IFC is investing in Aricom. IFC provides finance for anumber of projects in the region and as part of this investment will supportAricom in procuring project finance for K&S and Garinskoye." William Bulmer, Manager, Mining Investment Division, International FinanceCorporation, said: - "We are very pleased to participate in Aricom's mining developments in Russia.We believe that the development of Aricom's assets will add significant value toboth the communities surrounding the projects and to the Amur and EvreyskayaAutonomous Regions of Russia as a whole. We look forward to supporting Aricomin its ongoing investment programme including associated infrastructure projectsthat will contribute to regional development." - Ends - For further information:Aricom plcJay Hambro, Chief Executive Tel: +44 (0) 20 7201 8939 www.aricom.plc.uk AbchurchCharlie Jack/ George Parker Tel: +44 (0) 20 7398 7700 www.abchurch-group.com Canaccord AdamsChris Bowman Tel: +44 (0) 20 7050 6500 www.canaccordadams.com Notes to Editors Aricom plc is a leading developer of Russian metal and mining assets, focusingon iron ore and ilmenite production and delivery. The Company was establishedin September 2003 to develop projects, situated in the north west of the AmurRegion, in Russia's Far East. These projects are set to service the Chinese andRussian commodity market. Aricom currently operates three projects in the Amur region and the adjoiningJewish Autonomous Region. The Company's projects Kuranakh, K&S and Bolshoi Seymhave combined estimated reserves and resources of over one billion tonnes ofIron Ore and Ilmenite ores. The location of the Company's deposits offer asignificant logistical advantage being close to the Trans-Siberian-Express andthe Baikal-Amur Magistral railways. In 2005, 700 million tonnes of iron ore were shipped globally, of that 300million (43%) was shipped to China. It is currently estimated that China is oncourse to have imported 300 million tonnes of ore by the end of 2006 tofacilitate its demand for steel production. In June 2006, Aricom announced aMemorandum of Understanding with China's largest nonferrous metal companyAluminium Corporation of China ("Chinalco"), to co-operate in the design anddevelopment of a Titanium Sponge production plant in China. Aricom is headquartered in London, with a highly experienced board of directorscomposed of British and Russian citizens. The company's shares were admitted totrading on the AIM Market in December 2003 and trade under the symbol TIO.L. Forfurther information please visit www.aricom.plc.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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