29th Jan 2010 07:00
Weatherly International Plc ("Weatherly" or the "Company")
Termination of Kombat Sale Agreement
The Company wishes to announce that following the proposed sale of its Tsumeb smelter business, it has terminated its agreement for the sale of the Kombat mine.
On 2 November 2009 Weatherly announced that it had entered into an option agreement (the 'Cubenco Agreement') with a South African company, Cubenco 192 Pty Ltd ('Cubenco') whereby Cubenco had the option to purchase the Kombat mine for a total consideration of US$3 million. Under the terms of the Cubenco Agreement, Cubenco paid a non refundable option fee of US$160,000 with two further payments of US$600,000 and US$2,240,000 payable by 8 December and the end of March 2010 respectively. As Cubenco has failed to make the second option fee payment of US$600,000 within the timeframe specified in the Cubenco Agreement, the agreement has been terminated by Weatherly and the non-refundable option fee of US$160,000 has been retained.
Rod Webster, CEO of Weatherly commented:
"With the pending sale of the smelter business, which will provide the Company with cash of approximately US$13 million after clearing debts, Weatherly now has time to review its earlier decisions on asset disposals. In the near term however, the priority remains the reopening of the Matchless and Otjihase mines and the development of an open pit project at Tschudi."
For further information, please contact:
Rod Webster, Chief Executive Officer Weatherly International Plc
+44 (0) 20 7917 2989
Richard Greenfield, Ambrian Partners Limited
+44 (0) 20 7634 4710
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