ENRC’s subsidiary acquires 50.5% in South African Camrose for $175 million

August 23. Interfax-Kazakhstan

ENRC’s subsidiary acquires 50.5% in South African Camrose for $175 millionENRC Congo BV, a wholly owned subsidiary of Eurasian Natural Resources Corporation PLC, has acquired 50.5% of the outstanding common shares of Camrose Resources Limited, ENRC said in a statement.

According to the report, the deal totaled $175 million. The company paid $50 million in cash and issued promissory notes totalling US$125 million which mature between 9 months and 24 months

The Camrose shares have been purchased from Silvertide Global Limited, Zanette Limited and Cerida Global Limited which are held by the Gertler Family Trust.

Camrose’s assets are high quality copper and cobalt exploitation licences located in the DRC.

As part of the transaction, ENRC will provide Camrose with a $400 million shareholder loan facility to satisfy the existing payment obligations, repay committed loans previously undertaken by Camrose, fund working capital, commence feasibility studies and carry out mine planning and development.

ENRC was created in late 2006 as a result of reorganization of Eurasian Industrial Association and now also includes the assets of Kazchrome, Aluminum of Kazakhstan, Kazakhstan Electrolysis Plant, Zhairem Mining and Processing Integrated Works, Sokolov-Sarbai Mining and Processing Integrated Works, Eurasian Energy Corporation, Serov Ferroalloy Plant. ENRC also owns a 50% stakes in a joint venture with Bahia Minerals BV (BML), a project for exploration of iron ore in Brazil, and a 50% stake in Xinjiang Tuoli Taihang Ferroalloy Company in China (Tuoli).

In November 2009 ENRC purchased a 91.65% holding in the UK’s Central African Mining & Exploration (CAMEC). Recently ENRC announced the acquisition of Chambishi Metals, a Zambian copper and cobalt producer.