METALS X LIMITED Metals X Limited (ASX:MLX) (Metals X) notes the announcement of APAC Resources Limited (SEHK:1104) (APAC) on 1 June 2016 regarding a strategic review of its investment in Metals X.
A copy of the announcement by APAC is attached.
ENQUIRIES Peter Cook | Warren Hallam | Rod Corps |
Executive Director & CEO e: peter.cook@metalsx.com.au | Executive Director e: warren.hallam@metalsx.com.au | Manager - Investor Relations e: rod.corps@metalsx.com.au |
ASX Code: MLX
OTCQX Code: MLXEF
Level 3, 18-32 Parliament Place West Perth WA 6005
Australia
reception@metalsx.com.au www.metalsx.com.au
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
APAC RESOURCES LIMITED
亞 太 資 源 有 限 公 司 *
(Incorporated in Bermuda with limited liability)
(Stock Code: 1104)
STRATEGIC REVIEW OF INVESTMENT AND
SHAREHOLDERS' APPROVAL FOR
THE POSSIBLE DISPOSAL OF INVESTMENTS
The board of Directors (the ''Board'') of APAC Resources Limited (the ''Company'' together with its subsidiaries, collectively the ''Group'') today announced that it has decided to place its investment in Metals X Limited (''Metals X'') under strategic review.
The announcement of the strategic review follows discussions with a number of interested parties over the past 3 months. The Group has engaged the global investment bank, Deutsche Bank AG to act as its financial advisor to assist with the strategic review, with a view to maximising shareholder value.
The Group has been an investor in Metals X since 2007 and has been a long term supporter of the company. As part of this strategic review, all strategic options will be considered, including, inter alia, a complete disposal of the Group's shareholding interest in Metals X (the ''Disposal'').
As at the date of this announcement, the Group's holding in Metals X has been reduced from 21.7% to 20.8% following the shares issued by Metals X pursuant to its takeover bid for Aditya Birla Minerals Limited and will be further reduced to 18.8% if the current bid is fully accepted and completed.
In order to facilitate a possible outcome of the review, the Company intends to seek prior approval from its shareholders for the possible Disposal as required under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules''), as the possible Disposal, if it proceeds, may constitute a very substantial disposal for the Company under the Listing Rules. This will provide the Board with maximum flexibility, pending the outcome of the strategic review. A circular will be distributed to the shareholders of the Company shortly.
Further announcement(s), if any, will be made as appropriate.
REASONS FOR AND BENEFITS OF STRATEGIC REVIEW AND POSSIBLE DISPOSAL
The Australian dollar gold price currently sits near all-time highs around A$1,700 per ounce, which has led to a significant increase in valuations and corporate interest for Australian gold producers, including Metals X. The Company believes that the current environment represents an opportune time to review the Group's investment in Metals X and to possibly dispose all or part of such holding.
INFORMATION ON METALS X
Metals X is listed on the Australian Stock Exchange (Stock Code: MLX), a diversified group exploring and developing minerals and metals in Australia. It is Australia's largest tin producer, a top ten gold producer and holds a pipeline of assets from exploration to development including the Wingellina Nickel-Cobalt Project.
As the Disposal is subject to the outcome of the strategic review and approval by the shareholders of the Company, it may or may not proceed. Accordingly, shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.
By Order of the Board
APAC Resources Limited Arthur George Dew
Chairman
Hong Kong, 1 June 2016
As at the date of this announcement, the directors of the Company are:
Executive D irectors
Mr. Brett Robert Smith (Deputy Chairman) and Mr. Andrew Ferguson (Chief Executive Officer)
Non-executive Directors
Mr. Arthur George Dew (Chairman), Mr. Lee Seng Hui and Mr. So Kwok Hoo
Independent Non-Executive D irectors
Dr. Wong Wing Kuen, Albert, Mr. Chang Chu Fai, Johnson Francis and Mr. Robert Moyse Willcocks
* For identification purpose only
Metals X Limited published this content on 02 June 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 02 June 2016 07:11:09 UTC.
Original documenthttps://www.metalsx.com.au/system/announcements/720/1560171.pdf
Public permalinkhttp://www.publicnow.com/view/AC9E577EA3AE312CCA8DD17C01DE60249A8C70BF
