OZ Minerals has been advised that the Treasurer of the Commonwealth of Australia has today announced that he has approved the proposed acquisition by China Minmetals Non-Ferrous Metals Co. Ltd. (“Minmetals”) of all of the assets of OZ Minerals except for Prominent Hill (and related exploration leases), Martabe (and related exploration leases), certain exploration leases in Thailand and Cambodia and all of OZ Minerals’ listed equity investments (“Sale Assets”). The approval has been given following Minmetals having provided and accepted certain undertakings, which have been detailed in the Treasurer’s announcement.
A copy of the full statement from the Treasurer will be available at www.treasurer.gov.au
As announced by the Company on 14 April, Minmetals will pay OZ Minerals consideration of US$1,206 million for the Sale Assets. Consistent with a sale of business on a “cash free, debt free” basis and based on normal levels of working capital, the actual amount received by OZ Minerals at completion of the transaction will be subject to certain adjustments related to the working capital, net debt and agreed tax liabilities of the assets sold to Minmetals. These adjustments will be calculated as at month end prior to completion date.
“We are very pleased that the Treasurer has approved this transaction”, said Barry Cusack, Chairman of OZ Minerals, “as it is the best currently available solution that resolves all of the Company’s refinancing issues.
“A resolution authorising the sale of these assets to Minmetals will be put to shareholders at OZ Minerals’ upcoming Annual General Meeting and, in the absence of a superior proposal, the Board of OZ Minerals unanimously recommends that shareholders vote in favour of the sale.
“Throughout this transaction, Minmetals have demonstrated their commitment to developing a substantial business in Australia”, Mr. Cusack added, “and they have indicated to me their desire to meet with employees and other stakeholders impacted by the transaction as soon as feasible”.
Andrew Michelmore, Managing Director and CEO of OZ Minerals, added “Following today’s announcement by the Treasurer, OZ Minerals is one critical step closer to implementing the proposed transaction with Minmetals and resolving its refinancing issues.
At completion of the transaction, OZ Minerals will continue to own the newly-producing Prominent Hill coppergold mine in South Australia and other prospective assets and will have net cash on the balance sheet to enable it to develop into the future.”
OZ Minerals remains in negotiations with its lenders to extend the date by which certain of its lending facilities must be refinanced from 30 April 2009 to 30 June 2009. Such an extension would be sufficient to allow the proposed transaction with Minmetals to complete, based on the Indicative Timetable outlined below.
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