Perilya Limited

Published : December 09th, 2008

Secures Watershed Alliance with Zhongjin

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment

 

9 December 2008

 

PERILYA SECURES WATERSHED ALLIANCE WITH ZHONGJIN

RAISES $45.5 MILLION VIA A PLACEMENT OF NEW SHARES

 

Key Points

?         Perilya signs Share Subscription Agreement with major Chinese metals and mining company Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, to raise A$45,464,560

?         Issue price of A$0.23 represents a 53% premium to the last traded price of Perilya on 5 December 2008 and a 61% premium to the volume weighted average price (VWAP) of Perilya shares for the 30 trading days up to 5 December 2008

?         Further strengthens Perilya?s balance sheet cash backing and strongly positions Perilya to weather the current commodity price environment and for growth

?         Introduces a strong and committed strategic partner to secure the future of Perilya as an independent company

?         Zhongjin and Perilya agree to enter into good faith negotiations for potential lead and zinc concentrate off-take sales agreements on commercial and arms-length terms upon expiry of existing agreements

 

Perilya Limited (ASX:PEM) today announced it has entered into a share placement agreement and strategic partnership with major Chinese metal company Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (?Zhongjin?), to raise A$45,464,560.

Pending Perilya shareholders? and regulatory approvals, Zhongjin will subscribe for 197,672,000 fully paid ordinary shares in Perilya at an issue price of A$0.23 per share, to acquire 50.1% of the Company.  

Under the agreement, the Perilya Board will be restructured to allow for a new Board with Zhongjin representatives comprising half of the new Board. Paul Arndt will continue as Managing Director and Chief Executive Officer.

Perilya Managing Director, Paul Arndt, said ?the agreement represents a watershed event for Perilya and provides a significant platform for growth and a major operational and funding boost for the Company.?

?It also will leave Perilya extremely well placed to withstand the current commodity price environment, and to pursue growth options as they arise.?

?Perilya believes this access to capital provides a significant comparative advantage to other resource companies, and will also allow us to advance, as appropriate, development projects such as the Mount Oxide copper project,? Mr Arndt said.

?Zhongjin is a strong and well funded strategic partner committed to the long-term development of Perilya?s assets.  As China?s third largest zinc producer, Zhongjin has a wealth of mining, processing, smelting and marketing experience that will add significant value, particularly through these turbulent times,? he added.

President of Zhongjin, Mr Zhang Shuijian, said that ?this represents a good opportunity to invest in the Australian market and support Perilya.?

?Zhongjin is fully supportive of Perilya, its current management team and operating plan. This support will extend to future opportunities for Perilya and its shareholders as they arise.?

Mr Zhang confirmed that Zhongjin do not intend to accept CBH Resources Limited offer for Perilya shares post completion of this transaction.

Perilya Chairman Patrick O?Connor said ?a partnership with Zhongjin represents a Company-defining agreement for Perilya and its shareholders and leaves Perilya in a very strong position with no corporate debt and significant cash and investment reserves.?

?The Board is unanimous in the belief that the placement of shares to Zhongjin represents the best alternative currently available to Perilya shareholders, and will be voting their own stock in favour of the Placement?.

?The Board further believes the ability to deliver such a significant transaction against an extremely challenging economic backdrop is testament to both the leadership of Paul Arndt and the strength of Perilya?s asset base,? Mr O?Connor said.

As part of the Placement, Zhongjin will provide Perilya with an initial cash deposit of A$10 million, which is refundable in the event the transaction conditions precedents are either not satisfied or waived.

Zhongjin and Perilya have also agreed to enter into good faith negotiations with respect to potential arm?s length, commercial concentrate sales agreement(s) for a portion of Perilya?s zinc and lead concentrate production which will further support Perilya?s long-term viability.

UBS Investment Bank is acting as financial adviser to Perilya.

ENDS

For further information please contact:

Investors:                                                         

 

Paul Arndt

Managing Director                                                          

+61 8 6210 2000

 

Patrick O?Connor                                           

Non-Executive Chairman

+61 8 6210 2000

 

Inquiries:                                                          

 

Paul Marinko

Company Secretary

+61 8 6210 2000

 

Media:

 

Warrick Hazeldine           

Purple Communications

+61 89485 1254

 

Issued by

 

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 9485 1254 Fax: 08 6263 0455

purple@purplecom.com.au

 

 


 
 

Perilya Limited

PRODUCER
CODE : PEM.AX
ISIN : AU000000PEM8
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Perilya Ltd. is a zinc and lead producing company based in Australia.

Perilya Ltd. produces zinc, lead, silver in Australia, develops cobalt, copper and silver in Australia, and holds various exploration projects in Australia.

Its main assets in production are BROKEN HILL - POTOSI and BROKEN HILL in Australia, its main asset in development is MOUNT OXIDE in Australia and its main exploration properties are ROCKHAMPTON, BROKEN HILL EXTENDED, BROKEN HILL SOUTHERN EXTENSIONS, FLYING DOCTOR, NORTHERN LODES, PINNACLES (BROKEN HILL EXTENDED), FLINDERS and BROKEN HILL DISTRICT in Australia and TAMPANG in Malaysia.

Perilya Ltd. is listed in Australia and in Germany. Its market capitalisation is AU$ 184.1 millions as of today (US$ 162.7 millions, € 119.3 millions).

Its stock quote reached its highest recent level on January 05, 2007 at AU$ 5.80, and its lowest recent point on November 28, 2008 at AU$ 0.09.

Perilya Ltd. has 526 075 563 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Annual reports of Perilya Limited
2007 Annual Report
2006 Annual Report
Project news of Perilya Limited
2/27/2009(Mount Oxide)Increase in Resource for Mount Oxide Copper Project
1/21/2009(Broken Hill)Takeovers Panel Backs Perilya
8/21/2008(Broken Hill - Potosi)Broken Hill Operation
6/13/2008(Broken Hill)Significant new resources defined at Henry George
Corporate news of Perilya Limited
12/1/2010Announces Extension of Offer by Perilya
7/20/2009Silver buy-back transaction announcement
7/16/2009 Lowers Cash Costs of Production Via The Termination Of Silv...
1/22/2009WELCOMES PANEL DECISION, WITHDRAWAL
12/29/2008ZHONGJIN UPDATE
12/19/2008Takeovers Panel Media Release
12/9/2008Secures Watershed Alliance with Zhongjin
12/8/2008ADVISES SHAREHOLDERS TO TAKE NO ACTION ON CBH OFFER
11/14/2008CBH CONFIRMS PERILYA RESOLUTIONS WILL NOT TRIGGER OFFER COND...
10/2/2008Unsolicited Takeover Offer From CBH Resources Limited
8/29/2008 Full Year Report
8/19/2008 Excellent New Copper and Cobalt Intercepts and Metallurgica...
7/22/2008and CBH terminate Merger Implementation Deed
6/12/2008New Resource for Flinders increases confidence in a low cost...
2/21/2008Response to Media Article
12/21/2007Notice of ceasing to be a substantial holder
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
AUSTRALIA (PEM.AX)FRANKFURT (PY5.F)
0.350+0.00%0.229+4.57%
AUSTRALIA
AU$ 0.350
12/19 13:54 -
0%
Prev close Open
0.350 0.345
Low High
0.345 0.350
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  0.350 -%
Volume 1 month var.
188,781 -%
24hGold TrendPower© : 34
Produces Lead - Silver - Zinc
Develops Cobalt - Copper - Silver
Explores for Copper - Gold - Lead - Silver - Zinc
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 12/24/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.07-0.42%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.32-2.11%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 3.35+0.87%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.58-1.69%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.10+0.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.70-0.74%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 7.42+1.85%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.25-1.96%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.34-6.76%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.05-3.30%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 63.16-0.65%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+3.03%Trend Power :