22nd Dec 2006 07:00
AfriOre Announces Mailing of Directors' Circular and Lonmin Offer Documents
TSX/AIM:AFO ROAD TOWN, British Virgin Islands, Dec. 21 /CNW/ - AfriOre Limited
("AfriOre" or the "Company") is pleased to announce that Lonmin
Plc ("Lonmin") has mailed the offer documents relating to the recommended cash
take-over bid for AfriOre at CDN$8.75 per share (the "Offer") to all security
holders of AfriOre. Jointly with this mailing, the board of directors of
AfriOre has mailed a Directors' Circular in support of the Offer. The Offer
will be open for acceptance until 5:00 p.m. (Eastern Standard Time) on
January 26, 2007, unless extended or withdrawn by Lonmin.
The Offer remains subject to certain customary conditions described fully
in the offer documents, including that 66 2/3% of the AfriOre shares, on a
fully diluted basis, are tendered to the Offer. As reported in an AfriOre news
release dated December 18, 2006, the unconditional approval of the South
African Competition Commission has now been received and consequently AfriOre
believes that the principal regulatory condition to the Offer has been
satisfied.
The board of directors of AfriOre supports the Offer and has received an
opinion, dated November 14, 2006, from AfriOre's Canadian financial advisor,
Westwind Partners Inc., that the Offer is fair from a financial perspective to
the shareholders of AfriOre, subject to no material changes prior to the
closing of the transaction. Directors, officers and certain shareholders of
AfriOre, who hold in aggregate approximately 9% of the outstanding AfriOre
shares, have agreed to deposit their shares under the Offer and not withdraw
them except in limited circumstances.
The offer documents have been filed with all applicable securities
regulators and will be available on the SEDAR website at www.sedar.com.
For further information about tendering procedures or the Offer,
shareholders of AfriOre may contact Innisfree M&A Incorporated at
1-888-750-5834 (English speakers in Canada and U.S.), 1-877-825-8777 (French
speakers in Canada and U.S.) or 00800-7710-9970 (from the United Kingdom and
other European Union countries, as well as Switzerland and Norway). Banks and
brokers may call collect at 212-750-5833.
About AfriOre Limited AfriOre is listed on both the Toronto Stock Exchange and the Alternative
Investment Market of the London Stock Exchange. The Company is focused on its
74%-owned, 4,095 ha Akanani Platinum Project, located on the Northern Limb of
South Africa's Bushveld Complex. AfriOre's Exploration and Management Team has
extensive experience in platinum and gold projects in Southern Africa.
AfriOre's Management has a successful history of creating shareholder value
through the exploration and advancement of projects.
AfriOre has a treasury of approximately CDN$ 23.4M. The Company has
51,677,065 shares outstanding and 56,725,902 shares fully diluted. For
additional information on AfriOre visit the Company's website at
www.afriore.com. About Lonmin Plc Lonmin is the third largest platinum producer in the world. Domiciled in
the UK, the Company is listed on both the London and Johannesburg Stock
Exchanges, capitalised at approximately US$9 billion and is a constituent of
the FTSE 100. In the year to September 30, 2006, Lonmin's South African
operations produced 947,795 ounces of platinum and 1,807,044 ounces of total
platinum group metals. On October 9, 2006, Lonmin became the first platinum
major to convert its old order mining rights into new order mining rights for
the Group's Marikana operations, ensuring the viable future of these
operations which currently constitute around 95% of Lonmin's annual
production. Lonmin is advised by BMO Capital Markets.
For further information: AfriOre Limited Contact: Fiona Childe, Ph.D.,
P.Geo., VP Corporate Comm., Tau Capital Corp., Tel: (416) 361-9636 x 227,
Email: fchilde(at)taucapital.com; Nominated Adviser to AfriOre Limited:
Richard Thompson, Freddy Crossley, Corporate Finance, Charles Stanley
Securities, Tel : +44 207 149 6000; Lonmin Plc Contact: Alex Shorland-Ball, VP
IR & Communications, Lonmin Plc, +44 (0) 20 7201 6060, Email:
Alex.Shorland-Ball(at)lonmin.com
(AFO.)
LONMIN PLCRelated Shares:
Lonmin