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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Oriel Res. | LSE:ORI | London | Ordinary Share | GB0034246743 | ORD 1P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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| 0.00 | 0.00% | 121.50 | 0.00 | 01:00:00 |
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| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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| - |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
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| - | O | 0 | 121.50 | GBX |
Oriel Resources (ORI) Share Charts1 Year Oriel Resources Chart |
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1 Month Oriel Resources Chart |
Intraday Oriel Resources Chart |
| Date | Time | Title | Posts |
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| 29/9/2008 | 08:28 | Oriel Resources - Really Rising in 2007 | 348 |
| 09/2/2007 | 15:11 | Oriel Resources....the share price could be a lot higher by the end of the year! | 204 |
| 02/2/2007 | 16:04 | Oriel Resources....the share price could be a lot higher by the end of 2005.... | 502 |
| 16/1/2005 | 18:51 | Oriel Resources-from nickels to gold | 79 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
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Posted at 29/7/2008 20:48 by tricky1992000 mechel faces breakupMechel faces breakup - Rusal and others could face tax problems Putin widens campaign against metal export tax schemes. Author: John Helmer Posted: Tuesday , 29 Jul 2008 MOSCOW - In Robert Louis Stephenson's version of the way English pirates used to issue shareholder summonses for asset distributions, the Black Spot was a ink-blot, spilled on the page of a bible, and delivered by a blind-man. You could hide from the delivery, but not from the consequences. A second attack on the Mechel group by Prime Minister Vladimir Putin on Monday evening has increased the market perception that Igor Zyuzin, the controlling shareholder of the specialty steel and mining group, is facing a government-assisted breakup of his assets. He may be alone in a cardiological clinic at the moment. But Mechel isn't alone, as mid-level government officials have now been emboldened to press a campaign in favour of increasing their tax-take from ferrous and nonferrous metal exporters; and against tax optimization schemes used by the Russian non-ferrous metal exporters, such as the tolling used by United Company Rusal. In remarks televised on a Moscow evening news broadcast, Putin added to his earlier charges against Mechel, this time referring to transfer pricing and tax evasion. Putin said: "I already mentioned at the meeting [on July 24] that one company was exporting its product at a fraction of the domestic market price. The domestic price was 4,100 rubles ($176), and they were selling it to themselves, across the border, for 1,100 rubles, and then sells the product for $323. It is a reduction in the tax basis inside the country. It's not paying taxes, it's creating a shortfall on the domestic market, which means an increase in the cost of metals production." Russian law treats a difference of 20% or more in the price of goods sold between the domestic and export branches of a company as unlawful transfer pricing. All Russian metals exporters have operated offshore trading schemes, which employ variants of the differential pricing Putin described. Under pressure of their listing requirements in London or New York, the steel groups have consolidated their trading operations on to their main balance-sheets. But transfer pricing in steel, and tolling in aluminium, have continued. Tolling is a scheme for the exchange of imported inputs to metal fabrication, such as alumina, at a fixed price, for aluminium that is exported. The smelters earn a fixed fee; the offshore trader earns the difference between the smelter fee and the market price of the metal -- without paying tax in Russia. It is lawful if the importing companies are not connected to the smelter companies and the exporters. But if they are all part of the same holding, the tolling scheme is at risk of tax claims by the government. The Russian government's tax-take from the metal exporters has been substantially below that for the oil companies, which are subject to a windfall profits tax. But as the government has decided to reduce taxes on oil companies, in order to create incentives to stimulate oilfield production, the revenue authorities propose to fill the gap on the revenue side of the budget by taxing the metals sector. Putin is therefore considering whether to implement a proposal, apparently endorsed by his Finance Ministry, to hit steel exports with an export tax of about 15%. The market is also seeing a revival of proposals, long advocated by the Accounting Chamber -- the government auditor headed by former prime minister Sergei Stepashin -- to enforce the tax laws against tolling schemes. This week, Stepashin reportedly requested Putin's deputy in charge of industry concessions, Igor Sechin, to consider an anti-tolling campaign. Stepashin's small print means an attack on the owner of Rusal, Oleg Deripaska. Stepashin's spokesman told Mineweb that an analysis of tolling has recently been completed, and was reviewed by the Chamber presidium on July 18. The text of the Chamber's public statement, issued yesterday, explicitly refers to Rusal as benefiting offshore through the difference between "the high price of realisation of products of processing for the foreign market and the low cost of services in the processing of the Russian enterprises [smelters] and was not subject to taxation in the Russian Federation." The Chamber statement estimated the revenue value to Rusal at $2 billion. |
Posted at 07/3/2008 10:36 by eastwind 06.03.08 Oriel Resources Takes a Short Timeout MOSCOW, March 6. /FIS/ Directors Board of Oriel Resources Plc. recommended the shareholders 'not to take any decision regarding Mechel's offer'. The offer price and shareholding size have not been disclosed. Investors believe the recommendation is just the mark that Oriel Resources is ready to start active negotiations: the shares quotations grew by 12.85% yesterday and capitalization increased to USD1.26 billion. A source with Oriel confirmed that the Directors Board's refusal to support Mechel's offer at once is but a bargaining move. The source said the bargaining is likely not to last long and the deal may be announced by the end of the week. The delay could be also due to the need to agree everything with Kazakhstan's authorities. The British geology prospecting and production company owns Tikhvin Ferroalloy Plant near St.-Petersburg and two deposits in Kazakhstan. Source: Kommersant.-- |
Posted at 05/3/2008 17:43 by kenmitch Bo Doodak.They could offer less than the full market value, but I've never known this happen. There's always a first time for everything. But it's unlikely they would offer far less than the market value since all holders would need to do in that situation, assuming they have the funds, is to exercise the warrants and then sell the shares to realise the profits that way. ORIW - unlike some warrants - can be exercised at any time. It is more usual in a bid situation for warrant holders to be offered a bit extra on top of the market value for time value. BUT there is no time value protection clause for ORIW and as the warrants are trading at a discount a bidder is imo unlikely to offer above the "right" price for the warrants. e.g if they offer £1.25p for the shares then they will probably offer 50p for the warrants. If the market thinks there is a chance of a higher bid from another bidder or bidders then both shares and warrants would rise higher than £1.25 and 50p (or whatever price the Mechel bid is at). otoh if that is the only bid then often the share price sticks a bit below that price and the warrant selling price could be significantly below 50p or whatever. Again if this happens a way round it is either to wait for the bid to complete and then take the full price for the shares or warrants. Or if wanting to get the warrant money sooner, then again exercise the warrants and then sell the shares. Sometimes in a bid situation I sell ahead of the bid being completed even if it means missing out on the last bit of the profit if I have any fears that something could go wrong and the bid not go through. Hope that helps. |
Posted at 05/3/2008 16:03 by eastwind The trasnsaction price is 95p.HomePage Enlarge font Reduce font Baran records huge profit on Oriel sale Baran sold its 5.6% stake in the Canadian mining firm. Irit Avissar 5 Mar 08 11:16 Baran Group (TASE: BRAN; Pink Sheets:BRANF) will record a net capital gain of NIS 72-77 million on the sale its stake in Canadian mining firm Oriel Resources plc (TSX; ORL; AIM: ORI) to a foreign investor. Baran sold 47.3 million shares at ₤0.95 per share for a total of ₤44.94 million (about $78 million). Baran's net capital gain will depend in part on the shekel-pound exchange rate. Beit Dagan-based Baran owns a 5.6% stake in Oriel. Baran paid $2.5 million for 12.5% of IPH Polychrom Holdings BV, which in 2006 was merged with Oriel, in a reverse takeover, for Oriel shares. Baran received an Oriel stake through the transaction worth $30 million. The sale was made at a 4% discount on Oriel's share price on London's Alternative Investment Market (AIM) of ₤0.99. The share closed at C$2.10 on the Toronto Stock Exchange and closed at ₤1.10 on the AIM yesterday. Since 70% of the stake is held through a trustee, Baran will receive only 75% of the payment when the contract is signed, and the balance when the trustee releases the shares. Oriel owns metal and coal mines around the world. It has a market cap of $1.4 billion. Two days ago, Oriel said that Russian mining and steel company Mechel OAO (NYSE:MTL; RTS: MTLR) was "contemplating an offer for the entire issued capital of Oriel" and that the company was considering the offer. |
Posted at 04/3/2008 15:01 by eastwind Another one also says a billion dollars.Russian ferrochrome deal to fetch a billion dollars Nesis considers chrome sell-out in the most lucrative, short mining career on record. Author: John Helmer Posted: Tuesday , 04 Mar 2008 MOSCOW - A press leak in Moscow on Monday, followed by a confirming announcement from Mechel, the Russian stainless steel producer, indicated that Igor Zyuzin, Mechel's controlling shareholder, is trying to buy out chrome producer Oriel Resources, owned by Alexander Nesis and the ICT group of St. Petersburg. Mechel's corporate office was initially reluctant to confirm the reported talks, and the company's press release said only that Mechel "is currently contemplating the acquisition of Oriel. This process is at an early stage and there can be no certainty that any offer will ultimately be forthcoming." The target of takeover is an integrated ferrochrome producer based in the Leningrad region, the Tikhvin ferroalloy plant, with its own raw supply from two mines in Kazakhstan -- a chrome mine called Voskhod, and a nickel mine called Shevchenko. Nesis's ICT group have been involved in the chrome project for several years, when Nesis owned Polymetal, a St.Petersburg based silver miner. In 2006 Nesis sold Polymetal for $930 million in cash to Suleiman Kerimov, and began investing some of the proceeds in the chrome project. ICT remains a private holding. Its last website posting dates from December 2006, when ICT said it had completed "the merger between its metallurgical assets and those of Oriel Resources Plc. At their latest extraordinary general meeting, Oriel Resources Plc shareholders voted in favour of the deal, which will see a new integrated metallurgical company formed by uniting Voskhod, one of the world's largest chromite ore fields, and Tikhvin Ferroalloy Works. The Voskhod field belongs to Oriel Resources Plc., while Tikhvin Ferroalloy Works, located in Tikhvin, Leningrad Region, is owned by ICT Group and its partners. ICT Group President Alexander Nesis will sit on the Board of the new company." In 2007, Tikhvin started production of ferrochrome, with design capacity of 148,000 tonnes pa. The Voskhod mine is due to start production later this year. Oriel Resources is a London AIM and Toronto Stock Exchange listed company whose share price has jumped from 40.5pence on December 18 to 99.25p just before the takeover disclosure to the market. The website of Oriel Resources is currently inaccessible due to a virus warning. The Toronto Stock Exchange halted trading in the company's stock on Monday morning, but then resumed trading after official press releases were issued. Following Mechel's release, Oriel issued one of its own confirming that "that today it has received a non-binding indicative proposal from Mechel. Shareholders are advised to take no action at this time." On the share speculation since December, Nesis has seen Oriel's market capitalization almost double from GBP 331 million ($656 million) to GBP 616 million ($1,223 million). This gives Nesis's chrome venture a higher sale value than his silver mining company, when that was sold in 2006. Nesis has also sold out his shipbuilding and port assets in the St.Petersburg area. Oriel is a relative newcomer to the Russian chrome sector, but Nesis has been contemplating a chrome refinery and mine plan since 2003. In June of that year, when he was still the proprietor of Polymetal, Nesis announced publicly that he was at the final stage of making a decision to invest into construction of the Tikhvin ferrochrome plant, pledging to make up his mind "before the end of this year", and also promising about $60 million in capital expenditure on the project. At that time, Nesis said, he planned to source his chrome ore concentrate from Turkey. Alternatively, he said, he was considering the possibility of mining the Aganozerskoye chrome deposit in the Karelia region, north of St. Petersburg. That option would have cost Nesis another $50 million; he appears to have decided against it. Aganozerskoye reportedly had the capacity to produce 90,000 tonnes of chrome concentrate per year. Delays in investment into Tikhvin resulted, when a group of Israeli investors Nesis was considering for capital partners in the venture, withdrew from the project. Nesis was asked why he appears to be making his second exit from Russian mining so soon after his first, and whether he believes that the asset value of Oriel is peaking at present. ICT told CRU Steel News it is not commenting. A source close to Nesis said there are no negotiations at this point, but that developments can be expected in a week's time. The initiative for the deal, it appears, is coming from Zyuzin. MDM Bank warned Nesis to sit tight for the price to go up, but then warned Mechel shareholders against Zyuzin's temptation. "Valuation however could be an issue", reported analyst George Lilis, "because we are afraid that under the very hot environment for commodities, Mechel may be tempted to raise its offer and overpay at the peak of the cycle." If Nesis wasn't the source of the news, how is it possible, as Renaissance Capital, a Moscow investment bank, reported on Tuesday, that the Oriel share price has been moving up on knowledge of the bid from Mechel? According to RenCap analyst Yury Vlasov, "the market was anticipating this move as Oriel Resources' share price has advanced around 50% over the last month." Vlasov was no doubt referring to some in the market, not others. Volume of trading during this period, according to the Bloomberg chart, was minimal until a single day in mid-February, when it hit 21 million shares (3%), a 52-week record: Recent coal acquisitions in the Russian Fareast have obliged Zyuzin to load Mechel with $2 billion in debt. If Nesis opts for cash instead of Mechel shares, which is Nesis's likely preference, Zyuzin may require financing of another $1 billion for the takeover. Zyuzin has been signalling that he wants to spin off the Mechel group's mining assets, and list them separately on an international exchange. Mechel's coal mines are included in this scheme, but it has been unclear whether the IPO plan for this year would also include Mechel's iron-ore and nickel mines. Last year Mechel entered the ferro-alloy market, purchasing the ferro-silicon producer Bratsk Ferro-Alloy Plant. It produces 84,000 tonnes of ferroalloys. The possible acquisition of Oriel would more than double Mechel's capacity in this area. For years Mechel officials have been reluctant to identify their sources of supply of ferrochrome for stainless steel production. A veil of something like non-transparency also hangs over the Kermas group, a London registered holding for chrome and other ferro-alloy assets in the Urals region of central Russia. The assets include Chrome-Pik -- renamed Russian Chrome 1915 -- located in Pervouralsk, in the Chelyabinsk region; and the Serov Ferroalloys Plant, in the neighbouring Sverdlovsk region. The Mineweb backfile shows that the co-owner with Kermas of Serov was a Chelyabinsk group called Ariant, controlled by Alexander Aristov. Ariant also controlled the Chelyabinsk Electrometallurgical Combine, another ferroalloys producer. In 2004, according to Russian customs data, Serov and Chelyabinsk exported almost equal volumes of ferrchrome -- about 64,000 metric tonnes in H1 2004. However, the data indicate a significant difference between the two in customs value, suggesting the existence of transfer pricing, tolling or other schemes. Although Mechel denies it is under pressure to sell its steel division to the state metals company, Russpetstal (RSS), sources at the latter have confirmed that they have been negotiating for more than a year. The pressure was one of the factors that led to the decision of Zyuzin's co-controlling shareholder, Vladimir Iorikh, to sell out in 2006-2007. Defensive measures against a state takeover have been adopted by Zyuzin, and the acquisition of Oriel's chrome production chain creates both debt and asset value that may deter an RSS bid -- if it is retained within the steel division. On the other hand, industry sources believe that RSS is keen to secure chrome supplies for Russian steelmaking, and paying Nesis to hand over his internationally listed vehicle may be a move on which Zyuzin and RSS agreed in December, when the share price began its takeoff. |
Posted at 21/2/2008 20:42 by kenmitch The warrants now look a good way of playing this one at around 21p to buy. Exercise price 75p and expiry Feb 2010. Warrants at 21p to buy have lagged the rising share price - indeed the warrants were as high as 25p mid last year when the share price was much lower. For ages the warrants were way overvalued, and although still not cheap they are now in the money and the CFP has fallen to around 11% which is very fair value when the share price could rise a lot further. Gearing is nearly 4 times too. Well worth ORI fans buying a few warrants as well - or even to think of switching to the warrants for the greater upside. e.g target the share price doubling before expiry to 160p and the warrants should quadruple to 85p. Even a more modest target by then - say a 50% rise in the share price to 120p would give a warrant price of 45p, so the warrants would double. |
Posted at 03/7/2007 16:29 by hywel Oriel Resources PLC02 July 2007 AIM: ORI TSX: ORL PRESS RELEASE 30 June 2007 Oriel Resources plc Final Results for the year ended 31 December 2006 ____________________ Oriel Resources plc, ('Oriel', or the 'Company') the London-based chrome and nickel mining and processing company, announces its audited results for the year ended 31 December 2006. All amounts are presented in US Dollars. Highlights: Financial highlights Following the Extraordinary General Meeting - 6 December 2006, the Group completed the merger of the existing assets of Oriel Resources plc and the ferrochrome smelting plant in Tikhvin, Russia. The resultant reverse takeover of Oriel Resources plc injected cash reserves of $100m. On 22 December 2006 Oriel signed the $120m Finance Facility Agreement to fund the development of the Voskhod Chrome Project, Kazakhstan. Throughout the year, the Group has focused on the development of its existing projects and corporate objective of building a vertically integrated supplier to the stainless steel industry. New Board appointments have included Messer's Nesis, Rieger and Woodyer who each add relevant experience and strategic thinking to the Board. The annual general meeting of the Company will be held at Ground Floor, 1 Red Place, London W1K 6PL at 12.00 noon on Tuesday 31 July 2007. Executive Chairman, Dr Sergey V Kurzin commented: '2006 will be seen as one of significant and positive developments for the Group. From the Voskhod chrome project's extremely positive feasibility study results in June and December's reverse takeover, to the securing in December of an award-winning US$120 million debt finance package for the development of the Voskhod project, 2006 has been a year of numerous successes. Post-acquisition, an aggressive programme of continued construction and completion continued at Tikhvin. The smelter is now operational with the first successful smelt occurring April 2007.' Executive Chairman's Statement Emergence of a new, integrated stainless steel industry supplier I am pleased to present Oriel Resources plc's financial results for the year ended 31 December 2006. This year will be seen as one of significant and positive development for the Group. From the Voskhod chrome project's extremely positive feasibility study results in June and December's RTO, to the securing in December of an award-winning US$120 million debt finance package for the development of the Voskhod project, 2006 has been a year of numerous successes. Milestones: June 2006 Prior to the RTO, the Voskhod chrome project feasibility study results indicated average annual saleable chrome ore of over 900,000 tonnes and a significant off-take demand. Construction commences at the Voskhod project. September 2006 Successful completion of the Voskhod boxcut. December 2006 IPH Polychrom Holdings B.V.I. ('IPH') and Croweley International Limited ('Croweley') completed the RTO of the Company whose two major assets include separate chrome and nickel deposits in north western Kazakhstan. IPH's principal asset is the Tikhvin ferrochrome smelting plant in Russia, while Croweley's only asset was US$100 million cash. This resulted in the shareholders of IPH and Croweley gaining control of the enlarged Group. Under the continuing operational management and name of Oriel Resources plc, the RTO formed a new, cash rich,vertically integrated ferroalloy producer. Shareholders approved the formation of the expanded Oriel at an Extraordinary General Meeting on 6 December 2006 December 2006 Voskhod Chrome Project's US$120 million debt financing, closed with the Eurasian Development Bank ('EDB') (Russian/Kazakh Government joint venture), Bayerische Hypo- und Vereinsbank AG ('HVB') and WestLB AG ('WestLB'). These three institutions agreed to provide loan facilities totaling US$120 million for the further development of Oriel's Voskhod chrome project March 2007 Project Finance magazine presents the European Mining Deal of the Year 2006 award to the Voskhod Chrome Project for its recently-completed debt financing deal April 2007. First production at the Tikhvin ferrochrome smelter, Russia June 2007 Oriel completes a private placement raising approximately US$96 million (approximately C$104 million) by the issue of 80,000,000 ordinary shares at a price of 61 pence (approximately C$1.30) per share. As a result of the reverse takeover, the Consolidated Financial Statements of the Group are presented as if IPH was the acquirer of Oriel Resources plc. As a result, the Income Statement of the Group shows the historic trading of IPH for the full year and includes the trading of Oriel Resources plc from only the date of RTO. The RTO was an extremely positive move for the Group, as IPH's only asset was an almost complete ferrochrome smelter in Tikhvin, 200km south east of St Petersburg, Russia. Post-acquisition, an aggressive programme of continued construction and completion has continued at Tikhvin. The recent commencement of ferrochrome production at Tikhvin and the ongoing development of the Voskhod chrome project have now placed Oriel in a strong position to achieve its long-term objective of vertical and horizontal expansion and to become a premier, fully integrated ferroalloy supplier and producer. In addition, management is aggressively evaluating the optimum process and economics options to develop the Shevchenko nickel project, with on-going discussions with financial advisers. A decision on chosen technology and a construction time-line will be made in Q3 2007. During 2006, the Company's experienced management team and advisors, with strong Russian and Kazakh Government support, established a secure platform for the Company's future growth. As a direct result of acquiring Croweley with its only asset of cash US$100 million and the securing of Voskhod's US$120 million debt finance package, the Company immediately found itself with a strong cash position and balance sheet. In April 2007, Oriel commenced high carbon ferrochrome production at the Tikhvin smelter. The directors and I believe the enlarged cash position and the commencement of ferrochrome production are two factors, amongst others, which may be used to expedite the development of the Shevchenko nickel project and allow Oriel more options for further participation in the ferroalloy and stainless steel industries. We believe the success of our expansion and formation of new partnerships reflects the confidence shown not only in Oriel's projects and management, but also in Kazakhstan, with its political stability, emerging economy and its vast base of natural resources. The Oriel Board is extremely pleased to have closed the Voskhod debt financing in such short a timeframe and would like to thank EDB, Unicredit and WestLB for their support. In particular, we welcome EDB's involvement as a joint venture between the Russian and Kazakh Governments and are delighted to be its first major international mining financing. We look forward to long-term co-operation with EDB on other projects within the region. Our congratulations and thanks also go to Endeavour Financial for their hard work in arranging the funding facility and for contributing to Oriel being awarded the 2006 European Mining Deal of the Year from Project Finance Magazine. Most recently, Oriel successfully completed a private placement raising US$96 million which will be used as general working capital and for assessment, evaluation and engineering works for additional FeCr production and further progressing of the Shevchenko nickel project. The outlook for the global stainless steel market remains encouraging, with leading indicators showing signs of strong growth in demand for our chrome and nickel products. The International Stainless Steel Forum ('ISSF') believes global stainless crude steel production could rise by more than 5% in the next 12 months. Again China will take the lead in growth rates within a growing Asian market. The ISSF believes Western Europe will be the second largest stainless steel producing region, followed by The Americas and Central and Eastern Europe. With our projects strategic locations and management's aggressive approach to the advancement of those projects, we expect to be well positioned to deliver strong returns for our shareholders by developing our assets and expanding our activities. Management firmly believes that the Group will be able to bring the Voskhod project online as one of the world's lowest cost, high quality chrome operations and in record time. For a company the size of Oriel, the transition from feasibility study through to production in just over two years is indeed significant. As a result of the RTO, Alexander Nesis, Ehud Rieger and Neil Woodyer have agreed to become non-executive directors. As a result of the additions to the Board of Directors, David Swan, Dr Nic Barcza and Lord Mackenzie of Framwellgate have stood down as directors of Oriel. David Swan has continued as CFO & Company Secretary and will continue to be a valuable member of the Executive Management Committee ('EMC'). Dr Nic Barcza will also continue as an integral member of the EMC in his role as General Manager - Market Development & Project Evaluation. I would like to thank Lord Mackenzie for his Contribution and support of the Company. I would like to take this opportunity to thank all our employees, management team, advisers and business partners in Kazakhstan, Russia and London in particular Canaccord Adams, Endeavour Financial and Norton Rose who worked extremely hard to ensure 2006 was as successful as it was. The high level of dedication, commitment and long hours were instrumental in delivering these results and creating sustainable future shareholder value. Dr Sergey V Kurzin Executive Chairman 30 June, 2007 |
Posted at 15/11/2006 09:10 by frontiercapital Oriel Resources PLC15 November 2006 AIM: ORI TSX: ORL PRESS RELEASE November 15, 2006 Oriel Resources plc Operations update on the development of the Voskhod Chrome Project, Kazakhstan Funding agreed -------------------- The Directors of Oriel Resources Plc ('Oriel' or 'the Company'), the London-based chrome and nickel exploration and mining company, are pleased to advise an update on the progress of the development of its Voskhod chrome project ('Voskhod'), in north western Kazakhstan. We are pleased to confirm that the funding for the development of the project has been agreed and that the project remains on schedule. Debt Financing Oriel is pleased to announce that it has received and accepted credit approved commitments from UniCredit Markets & Investment Banking acting through Bayerische HypoVereinsbank AG ('UniCredit Group (HVB)') and WestLB AG ('WestLB') to jointly arrange and underwrite a Project Term Loan Facility for up to a total of US$120 million for its Voskhod Chrome Project ('Facility'). The Facility consists of two tranches: Tranche 1 - US$100 million for the construction, development and operation of Voskhod; and Tranche 2 - US$20 million for potential overruns related to capital and working capital costs at Voskhod. The Facility will be subject to the satisfaction of certain conditions including the securing by Oriel of all requisite regulatory permits and licenses and completion of final loan documentation. The Facility is expected to close by the end of this year, with first drawdown expected in the first quarter of 2007. Endeavour Financial is advising on the debt finance and will be working with Oriel to complete the document as soon as possible. Chrome Ore Off-take Conditional Letters of Intent ('LOI') for the supply of chrome ore and beneficiated chrome ore from the Voskhod Chrome Plant have been signed by the Company with five groups within the stainless steel and ferro-chrome industry: two end-users in Europe and Russia and three major traders in Europe and China. The excellent quality of the Voskhod chrome ore is confirmed by the high level of interest in off-take demand. Demand has exceeded output by almost double the expected average production of 900,000 tonnes per year. The quality of the ore has been evaluated by SRK from hundreds of samples from the core drilling programme completed earlier this year as well as feed back from prospective consumers. Off-take agreements are also now well advanced with three of the parties with whom LOI's have already been signed. One of these parties is the recently acquired Tikhvin ferro-chrome smelter plant near St Petersburg in Russia. Demand for beneficiated chrome ore from the Tikhvin plant will be satisfied from approximately one-third of the Voskhod production, thus leaving the other two thirds of Voskhod's production for sale to other producers. Oriel is confident that off-take agreements for 70% of production will be finalised before the end of the year. Voskhod Mine Development Management is pleased to report on the following progress of mine development at Oriel's Voskhod Chrome Project: Successful completion of the box cut enabling underground contractors (Byrnecut Mining and Vostokshakhtstroy, a local Kazakh contractor) to establish the portal and initiate development of the decline. Commencement of the foundation work for the first ventilation shaft. Near completion of a temporary road from the box cut to the ventilation shaft opening. Completion of and start of operations at Voskhod's shotcrete batching plant that will manufacture concrete required for decline and cross cut developments. Advanced stage of upgrading Voskhod's 70-room employee accommodation facility in Chromtau. Nearing completion of the mining contract and process and engineering contract. Dr Sergey V Kurzin, Executive Chairman of Oriel commented: 'The Board are extremely pleased that we have been able to secure a financing commitment from such world-class financial institutions and we look forward to working with the Lenders in completing the documentation for the US$120 million financing, as soon as possible. 'Also, I am happy to report that Oriel's experienced project management team is keeping Voskhod's mine development on schedule. 'The conclusion of the financing along with the recent acquisition announcement, subject to shareholder approval, means that we will have everything in place, including off-take agreements, to allow us to develop what is a world class deposit. The enlarged group will have a strong cash position and this will give us the ability to advance the Shevchenko Nickel Project, another potential world class deposit that we have in Kazakhstan.' ENDS -------------------- For further information please contact: Dr Sergey V Kurzin, Executive Chairman, Oriel Resources plc Tel: +44 (0) 20 7514 0590 Nick Clarke, Managing Director, Oriel Resources plc Tel: +44 (0) 20 7514 0590 Gavin Dallas, Marketing and PR, Oriel Resources Plc Tel: +44 (0) 20 7514 0590 Michael Padley / Michael Spriggs, Bankside Consultants Tel: +44 (0) 20 7367 8888 Keith Schaefer, Vanguard Shareholder Solutions Tel: + 1 604 608 0824 www.orielresources.c -------------------- This information is provided by RNS The company news service from the London Stock Exchange |
Posted at 03/11/2006 07:50 by kermit Oriel Resources (ORL-TSX), Daily Chart, Semi-log ScaleGSW ORL.JPG Editor's comments (November 1 2006, ORL-TSX last close $1.05): The share price has closed at its highest level of the last 18 months, closing at $1.05 after hitting a high of $1.08. This matches the high of $1.08 ($1.03 close) achieved on the volume spike of September 14, 2006, the day Bloomberg stated that Russia's wealthiest man wants to take a stake in Oriel (see below chronology of our comments, as marked on the chart above). We suspect that we are in the midst of a price trend that will continue on to new highs, in fits and starts, as the company progresses through development of its two projects, and becomes a cash cow that will rival Northern Orion and Wheaton River (now merged with Goldcorp). Long-time subscribers will recall that Endeavour Capital Group similarly sponsored those deals. We will continue to hold our shares through the inevitable corrections, to ensure that we are well represented when dividends are ultimately declared. You've been well briefed of what's going on (see below a chronology of my commentary). Review of our recent comments: Editor's comments (October 16 2006, ORL-TSX last close $0.85): Oriel is undergoing a three-way combination, transforming into a vertically integrated ferrochrome business with a strong financial footing and increased capacity to develop their world-class Shevchenko nickel project. Through this reverse takeover the new partners are investing $100-million (U.S.) in cash requiring shareholder approval within 23 days from posting of the admission document to Oriel shareholders. Oriel will acquire an unlisted Dutch holding company constructing a ferrochrome smelter at Tikhvin near St. Petersburg, Russia. Oriel will acquire 100 per cent of the issued share capital of IPH in exchange for the issue of 248,971,014 ordinary shares. Oriel will also acquire an unlisted BVI company. On closing of the acquisitions, Croweley's only asset will be cash of $100-million (U.S.). Oriel will acquire 100 per cent of the issued share capital of Croweley in exchange for the issue of 102,880,584 ordinary shares. This acquisition implies a price of 51.81 pence per share, being a 38-per-cent premium to Oriel's closing price of 37.5p on 14 September 2006 when the ordinary shares were suspended on AIM. As a result of these transactions existing Oriel shareholders will hold approximately 36.7 per cent of New Oriel, while the new shareholders will hold approximately 44.8 per cent and 18.5 per cent respectively. In effect, 63.3 per cent of the company has been exchanged for a ferrochrome smelter in an advanced stage of completion, and $100-million (U.S.) in cash, along with value-added management and sufficient resources to develop Shevchenko a huge potential cash generator. Editor's comments (September 14 2006, ORL-TSX last close $0.80): TodayBloomberg stating that Russia's wealthiest man wants to take a stake in Oriel. Abramovich lives in London, owns a soccor team there (Chelsea) and is likely the go-to man when it comes to Russia's resource wealth. We hear that Oriel is essentially his target for a reverse takeover (RTO) whereby he funds the company to fast-track it's project development, adds more potential properties to Oriel's already large holdings, and takes back shares to become Oriel's largest shareholder. Editor's comments (July 16, 2006, ORL-TSX last close $0.68): On June 6th Oriel announced the outcome of their SRK Feasibility Study. The study's outcome is leading the company to "fast-track development of the Voskhod Project". Oriel purchased the Voskhod chrome mine in northwestern Kazakhstan in February of 2005 for $15 million. The SRK study estimates operation cash flow for the life of the mine to be $1.2 billion with average annual cash flow of $85 million. The company is sitting on over US$30 million in cash and has just over 200 million shares outstanding. With capital costs estimated at $131 million, this alone provides an exceptional return: Pretax Posttax NPV US$472 million US$320 million IRR 50% 41% The most notable highlight of the SRK study is the potential for significant production increases, which could make Oriel Resources one of the three top chrome suppliers in the world. And then there's their massive Schevchenko project ... (see report for more). Editor's comments (June 5, 2006, ORL-TSX last close $0.61): With just over 200 million shares issued and an indicated NPV of US$472 million (pre-tax) and US$320 million (post tax), this is a significantly undervalued opportunity. Endeavour Financial is leading advanced negotiations with a number of leading international players on debt financing options. Endeavour is confident that the project economics is sufficiently robust to support over $100-million (U.S.) of debt which, in addition to over $30-million (U.S.) of Oriel's cash reserves, provides the security the project financing requires. Editor's comments (January 27, 2006, ORL-TSX last close $0.53): One of our most senior and undervalued holdings, Oriel should be a cash cow within 18 months. I met with management while they were visiting North America and reviewed their cash flow projections and the logistics involved. In a perfect world they will be able to proceed with both their projects without further dilution. This is very realistic. Cash flow in their first full year of production, pre-tax, is estimated at $0.42/share ... obviously the share price at yesterday's $0.53 close is very cheap on that basis. We are slowly adding to positions. Obviously, RAB Capital (see disclosure of increase in holdings) thinks it's cheap too - they do their buying on the London AIM market where Oriel trades better volume. Editor's comments (June 15, 2005, ORL-TSX last close $0.68): Our sources have confirmed that almost 20 million shares were sold out of an investment fund, the result of a new investment manager coming in after the old one was fired. There was also a significant amount of 1pence "founder" shares (owned by an initial founder, not part of current management) that came free-trading, requiring placement with new investors. This process has now been completed, as can be seen from the volume spikes on the AIM market chart. North American investors who assume that Oriel is not liquid enough to enter and exit on the TSX should find greater liquidity going forward, with market-makers now willing to enhance TSX liquidity as a new up trend commences. And the AIM market has now turned, trades great volume every day, and has technically bottomed. The fact of life for Oriel is that with over 200 million shares issued and mostly held by UK investors, the Canadian market place remains reactive to UK interests rather than proactive, at least until an institutional and retail following is developed in North America. However, with a breakout commencing on the AIM market after a "V" bottom, the timing looks good. Your Source for High-Potential Early-Stage Growth Stocks Since 1995 |
Posted at 16/10/2006 07:22 by kermit RNS Number:4883KOriel Resources PLC 16 October 2006 AIM: ORI TSX: ORL 16 October 2006 Oriel Resources plc Oriel to become vertically integrated ferrochrome producer and attracts strategic investment at premium to pre-suspension share price Oriel Resources Plc ("Oriel"), a London-based chrome and nickel exploration and mining company, is pleased to announce that it has entered into two separate but inter-conditional acquisition agreements. Under the first agreement, Oriel will acquire IPH Polychrom Holding BV ("IPH"), an unlisted Dutch holding company which is at an advanced stage of constructing a ferrochrome smelter at Tikhvin near St Petersburg, Russia (the "IPH Acquisition"). Under the second agreement, Oriel will acquire Croweley International Limited ("Croweley"), an unlisted BVI company (the "Croweley Acquisition"). At closing, Croweley's only asset will be cash of US$100,000,000. The IPH Acquisition and the Croweley Acquisition (together, the "Acquisitions") constitute a reverse takeover of Oriel under the AIM Rules and in each case the consideration will be the issue by Oriel of new Ordinary Shares. Highlights * Oriel's two main assets are a chromite project at Chromtau, Aktobe Oblast in north western Kazakhstan ("Voskhod") and a nickel project at Zhetygara, Kustanay Oblast in north western Kazakhstan ("Shevchenko"). The combination of Oriel and IPH will create an integrated ferrochrome business comprising the development of a chromite mine, processing plant and ferrochrome smelter. * Concurrently, Oriel has agreed to acquire Croweley. The Croweley Acquisition will provide the enlarged group ("New Oriel") with US$100 million in cash which is intended to be used to finance the development of the Voskhod mine (in addition to anticipated debt finance), for working capital purposes, to advance development of the Shevchenko project and to pursue strategic opportunities. Croweley is currently 100% beneficially owned by Alexander Nesis. Mr Nesis also beneficially owns 50% of the Tikhvin operations through his indirect shareholding in IPH. * The investment being made through the Croweley Acquisition is at a price of 51.81 pence per Ordinary Share (based on an exchange rate of US$1.8761 per pound sterling), or a 38% premium to the closing price of Ordinary Shares on AIM (37.5 pence) when trading was suspended on 14 September 2006. * Upon closing the Acquisitions, IPH and Croweley will become subsidiaries of Oriel. At that time and on an issued share basis, existing Oriel shareholders will hold approximately 36.7% of New Oriel, while the IPH shareholders will hold approximately 44.8% and the Croweley shareholder will hold approximately 18.5%. * Oriel will retain its name, Dr Sergey V. Kurzin will continue as Executive Chairman and Oriel's management team will remain in place. The board of directors will include the addition of Alexander Nesis, Ehud Rieger (each of whom are direct or indirect shareholders of IPH) and Neil Woodyer (Managing Director of Endeavour Financial International Corporation). These additions are facilitated by each of David Swan, Dr Nic Barcza and Lord Mackenzie of Framwellgate agreeing to step down from the board as of 13 October 2006. Each of Messrs Swan and Barcza will continue to be integral parts of the New Oriel management team reporting directly to the Executive Chairman. David Swan continues as CFO and Company Secretary and Dr Barcza continues as General Manager - Market Development & Project Evaluation. * New Oriel is expected to have cashflow from Tikhvin in early 2007, approximately one year earlier than the projected start-up of the Voskhod mine. New Oriel intends to source chromite ore for the Tikhvin smelter from Turkish and other sources until production commences at Voskhod. * Trading in Oriel's Ordinary Shares and Warrants on AIM is expected to resume after posting an admission document to shareholders. This admission document is currently being prepared and will be posted as soon as reasonably practicable. * The Acquisitions are subject to the approval of existing Oriel shareholders at an extraordinary general meeting to be held as soon as reasonably practicable, but no earlier than 23 days following the posting of the admission document. Oriel directors intend to unanimously recommend that shareholders vote in favour of the proposed resolutions at the EGM. Oriel has received irrevocable undertakings to vote in favour of the Acquisitions from its existing directors in respect of 7% of the Ordinary Shares. The Acquisitions are also subject to the admission to trading on AIM of the Ordinary Shares and Warrants of Oriel and to the approval of the Toronto Stock Exchange. Commenting on the Acquisitions, Dr Sergey V. Kurzin, Executive Chairman of Oriel said: "The proposed transactions offer a unique opportunity to Oriel shareholders. Under this three-way combination, our shareholders will benefit from the assets, expertise, and political and financial strength of the entities we have brought together. New Oriel will be a vertically integrated ferrochrome business with a strong financial footing and increased capacity to develop our Shevchenko nickel project. I am particularly pleased that our new partners from the IPH Acquisition have shown their commitment by investing US$100 million in cash. Looking ahead, New Oriel will have a strong foundation from which to explore further growth opportunities, both vertically and horizontally, in the ferro-alloy and stainless steel industries." This summary should be read in conjunction with the full text of this announcement which follows. Enquiries Oriel Resources Plc - For further information please contact: Dr Sergey V. Kurzin, Executive Chairman, Oriel Resources plc Nick Clarke, Managing Director, Oriel Resources plc Gavin Dallas, Marketing and PR, Oriel Resources plc Tel: +44 (0)20 7514 0590 www.orielresources.c Not for release, publication or distribution in or into the United States of America, Australia, South Africa or Japan This announcement does not constitute an offer or invitation to purchase any securities. Not for release, publication or distribution in or into the United States of America, Australia, South Africa or Japan 16 October 2006 Oriel Resources to become vertically integrated ferrochrome producer and attracts strategic investment at premium to pre-suspension share price Introduction Oriel Resources Plc ("Oriel"), a London-based chrome and nickel exploration and mining company, is pleased to announce that it has entered into two separate but inter-conditional acquisition agreements. Under the first agreement, Oriel will acquire IPH Polychrom Holding BV ("IPH"), an unlisted Dutch holding company which is at an advanced stage of constructing a ferrochrome smelter at Tikhvin near St Petersburg, Russia (the "IPH Acquisition"). The current shareholders of IPH are Polyprom Holdings BV (of which Alexander Nesis is a principal), A&NN Properties Limited (of which Alexander Mamut is a principal), Baran Group Ltd (an Israeli public company), members of the Rieger family and Baran-Alrig Ltd (of which Baran Group Ltd, Ehud Rieger and other members of the Rieger family are principals). Oriel will acquire 100% of the issued share capital of IPH in exchange for the issue of 248,971,014 Ordinary Shares. Under the second agreement, Oriel will acquire Croweley International Limited ("Croweley"), an unlisted BVI company (the "Croweley Acquisition"). On closing of the acquisitions ("Closing"), Croweley's only asset will be cash of US$100,000,000. Oriel will acquire 100% of the issued share capital of Croweley in exchange for the issue of 102,880,584 Ordinary Shares. This acquisition implies a price of 51.81 pence per share, being a 38% premium to Oriel's closing price of 37.5p on 14 September 2006, when the Ordinary Shares were suspended on AIM (at the Bloomberg prevailing exchange rate of US$1.8761/#1.00 on 13 September, the day prior to the suspension of trading in Ordinary Shares on AIM). Croweley is currently 100% beneficially owned by Alexander Nesis. Mr Nesis also beneficially owns 50% of the Tikhvin operations through his indirect shareholding in IPH. The IPH Acquisition and the Croweley Acquisition (together, the "Acquisitions") are inter-conditional. In view of the size of each of IPH and Croweley in relation to Oriel, the Acquisitions constitute a reverse takeover of Oriel under the AIM Rules and therefore require the approval of Oriel's shareholders at an extraordinary general meeting (the "EGM") to be held as soon as reasonably practicable, but no earlier than 23 days following the posting of the admission document to Oriel shareholders. The Acquisitions are also subject to approval from the Toronto Stock Exchange (the "TSX") and a waiver from the Panel on Takeovers and Mergers (the "Panel"), each of which are discussed below. On completion of the Acquisitions, IPH and Croweley will become subsidiaries within the enlarged Oriel group ("New Oriel"). At that time and on an issued share basis, existing Oriel shareholders will hold approximately 36.7% of New Oriel, while the IPH shareholders will hold approximately 44.8% and the Croweley shareholder will hold approximately 18.5%. As a result of share price movement and market rumour, trading in Oriel's Ordinary Shares and Warrants on AIM was suspended on 14 September 2006. The suspension of trading in the Ordinary Shares and Warrants on AIM is expected to be lifted on posting of an admission document relating to the Acquisitions, which is being prepared and will be posted to shareholders as soon as reasonably practicable. Background to and reasons for the Acquisitions The Tikhvin ferrochrome smelter ("TFS") is expected to start production of ferrochrome in early 2007 and will require substantial quantities of chromite ore. Oriel's Voskhod Chromite Project ("Voskhod") is currently expected to start production in the first half of 2008. Prior to the start of production at Voskhod and to any extent as may be necessary thereafter, New Oriel expects to source ore for the TFS from Turkish and other sources. In anticipation of the start-up at the TFS, initial contracts for ore from Turkish sources have already been entered into by the IPH group. The IPH Acquisition will provide: * Oriel with a dedicated consumer of a substantial part of Voskhod's anticipated production with the remainder of Voskhod's production to be sold to third parties; * the TFS with a vertically integrated source of chromite ore; and * Oriel with opportunities to optimise the economics and processes currently contemplated at the TFS. The IPH Acquisition will create an integrated chromite mine, processing plant and ferrochrome smelter which the directors believe will create significant value for Oriel shareholders. In particular: * the IPH Acquisition will provide New Oriel with exposure to the ferrochrome market which is generally more liquid than the chromite market; * New Oriel will have a wider range of potential customers as a supplier of both chromite ore and ferrochrome; and * New Oriel will have the flexibility to manage ore production and smelting capacity in response to prevailing market conditions. In addition, conditional upon and concurrently with the IPH Acquisition, Oriel will acquire Croweley. At Closing, Croweley will have a net cash balance of US$100 million which is intended to be used: * to finance the development of the Voskhod mine (in addition to anticipated debt finance); * for working capital purposes; * to expedite the development of the Shevchenko project; and * to pursue future strategic opportunities. As a result, New Oriel will have a significantly stronger cash position and balance sheet than the current Oriel group. New Oriel is expected to commence cashflow generation (through the TFS) approximately one year earlier than would be the case if the IPH Acquisition was not to occur. The directors believe that these two factors, amongst others, should make it easier to raise further funds which may be used to expedite the development of the Shevchenko Nickel Deposit and allow New Oriel more options for further participation in the ferro-alloy and stainless steel industries. Finally, the directors believe that New Oriel will benefit from the combination of Oriel's access to western capital markets and technical expertise as well as the political and financial strengths of its new shareholders. Strategic Development Plan The immediate goals of New Oriel will be to: * commence production of ferrochrome at the TFS; * secure debt finance, continue construction and commence commercial mining operations at Voskhod; and * integrate the production of Voskhod and the TFS. In the longer term, New Oriel will seek to advance development of the Shevchenko Nickel Project and to leverage its assets, size and skills to further participate in the ferro-alloy and stainless steel industries if appropriate opportunities become available. The Board As a result of the proposed additions to the board of directors, each of David Swan, Dr Nic Barcza and Lord Mackenzie of Framwellgate have agreed to stand down as directors of Oriel as of 13 October 2006. David Swan will continue as CFO and Company Secretary and continue to be a valuable member of the Executive Management Committee (the "EMC"). Dr Barcza will also continue as an integral member of the EMC in his role as General Manager - Market Development & Project Evaluation. Each of David Swan and Nic Barcza will report directly to the Executive Chairman in their new roles. Conditional on the Acquisitions becoming effective and the approval of shareholders at the EGM, Alexander Nesis, Ehud Rieger and Neil Woodyer have agreed to become non-executive directors of the Company (brief biographies of each proposed director are set out below). The proposed directors have not yet entered into letters of appointment with Oriel but, subject to being appointed at the EGM, are expected to do so. Details of these letters of appointment will be included in the admission document. Alexander Nesis Alexander Natanovich Nesis was born on 19 December 1962. In 1985 he graduated from the physical-chemical department of the Leningrad technological institute. Between 1985 and 1990 he worked as supervisor and deputy shop floor superintendent at Baltijsky shipyards. Since 1990 he has been active as a businessman and in 1993 he was appointed the General Director of CJSC ICT and he is, indirectly, a significant shareholder in IPH. From 1998 to 2003 he also worked as the General Director and a member of the board of directors of OAO MNPO Polymetal. He is currently a director of CJSC ICT and chairman of the board of directors of North West Ferro-Alloys, a subsidiary of IPH ("NWF"). Ehud Rieger Ehud Rieger was born on 3 February 1962. In 1989 he graduated from Tel Aviv University Law School and subsequently obtained an MBA from INSEAD in Fontainbleau, France. Mr Rieger was a founder of the Alrig group of companies and continues to be a partner in that group and the CEO of Alrig Investments & Finance Limited. The Alrig Group comprises a number of investment companies investing in Israel and Western and Eastern Europe. Mr Rieger has managed the group's activities in Russia and also been active in its operations in The Netherlands. In addition he has managed the Israeli real estate business, Migdal Haneviim Limited since 2001. He is currently a director of a number of companies including The Alrig Group, ACP Advanced Core Technology Ltd and NWF, as well as being himself a shareholder in IPH. Neil Woodyer Neil Woodyer was born on 2 October 1943 and is the founder and Managing Director of Endeavour Financial International Corporation ("Endeavour Financial"). He is responsible for managing financial advisory mandates and investment related services. His experience in natural resource marketing and finance spans thirty years, including Chief Executive Officer positions with Lloyds International Trading, a subsidiary of Lloyds Bank specialising in project and trade finance and commodity trading, Amalgamet's group of New York and Latin American based metal trading, and mining finance companies. He is a Fellow of the Institute of Chartered Accountants in England and Wales. Financial Advisers Oriel's Nominated Adviser and broker is Canaccord Adams Limited ("Canaccord") and its financial adviser for debt and merger and acquisition transactions is Endeavour Financial. IPH's financial adviser is Morgan Stanley & Co. Limited. On completion of the Acquisitions, it is anticipated that Canaccord will continue as Nominated Adviser and co-broker to New Oriel, Morgan Stanley will become financial adviser and co-broker to New Oriel and Endeavour Financial will continue in its current role as financial adviser in respect of debt and acquisition opportunities. Panel & TSX Consent Following completion of the Acquisitions, the vendors of IPH and the Croweley vendor, who are deemed to be acting in concert by the Panel, will between them be interested in 351,851,598 Ordinary Shares representing approximately 63% of the share capital of New Oriel. An application will be made to the Panel for a waiver (the "Panel Consent") of the obligation to make a general offer under Rule 9 of the City Code that would otherwise arise on completion of the Acquisitions. If granted, the Panel Consent would be subject to the approval of independent shareholders at the EGM on a poll. In order to obtain TSX approval, New Oriel must meet all of the TSX's original listing requirements. The directors anticipate that New Oriel will meet all of these requirements, but if it does not, New Oriel will apply to de-list its Ordinary Shares from the TSX, in which case it intends to continue to have the Ordinary Shares and Warrants admitted to trading on AIM. Terms of the Acquisitions Completion of the Acquisitions is conditional on, amongst other things, Panel Consent, the approval of Oriel shareholders of the relevant resolutions to be proposed at the EGM, Admission, Russian anti-monopoly consent, the waiver of pre-emption rights of the Republic of Kazakhstan under applicable law in relation to the Acquisitions, Croweley having cash of US$100 million at Closing and no material breach of the various representations and warranties given by the parties to the relevant agreements taking place prior to completion. Lock-in Arrangements As required by Rule 7 of the AIM Rules, each of (a) the existing directors, the proposed directors and their associates (as defined in the AIM Rules) who hold Ordinary Shares or Warrants, (b) the IPH shareholders and (c) the Croweley shareholders on Admission who are either also IPH shareholders or otherwise hold more than 10% of Oriel shares, will agree not to sell, transfer or otherwise dispose of any interest in any Ordinary Shares or Warrants held by them immediately following Admission (other than in certain limited circumstances) for a period of 12 months. On an issued share basis, these lock-in arrangements currently apply in respect of 366,242,965 Ordinary Shares representing 66% of New Oriel's share capital. Information on Oriel Resources Oriel was formed in July 2003 and is a London-based chrome and nickel exploration and mining company with its Ordinary Shares and Warrants admitted to trading on AIM and its Ordinary Shares listed on the TSX. Its primary focus is on the identification, acquisition, exploration and development of advanced and high quality chrome, nickel, and other alloying opportunities in the countries of the FSU, including Kazakhstan and the Russian Federation. The Oriel group currently has two projects, namely the Voskhod Chrome Project and the Shevchenko Nickel Project, both situated in north-western Kazakhstan. Following the results of recent feasibility studies for both projects and given the current high demand for chrome and nickel products, the directors intend to work towards fast-tracking the Voskhod Chrome Project into production and developing the Shevchenko Nickel Project. Information on IPH IPH is a Dutch-based holding company which has direct and indirect Russian subsidiaries which have been actively developing the TFS in Tikhvin, near St Petersburg, Russia since 2004. The TFS is approximately 85% complete and construction is fully financed as at the end of September 2006. The Directors expect that construction of the TFS will be completed in early 2007. Commercial smelting is expected to start in the first half of 2007. The market for TFS's ferrochrome is expected to be Europe with further possible markets in China and the US. Ferrochrome smelting requires three main raw materials: chromite ore, coke and quartzite flux. IPH currently expects to source coke and quartzite from producers in Russia. Subject to completing the IPH Acquisition and Voskhod entering into commercial production, the directors expect that Voskhod will provide the majority of chromite ore for the TFS, immediately transforming the Group from a mining production company into an integrated mine, processing and production operation. The current shareholders of IPH are Polyprom Holdings B.V. (of which Alexander Nesis is a principal), A&NN Properties Limited (of which Alexander Mamut is a principal), Baran Group Ltd. (which is an Israeli public company), Ehud and Shaul Rieger and Dina Rieger Weiss and Baran-Alrig Ltd. (of which Ehud Rieger and other members of the Rieger family are principals). This announcement does not constitute an offer or an invitation to purchase any securities. Canaccord Adams Limited, which is regulated and authorised in the United Kingdom by the Financial Services Authority, is acting exclusively for Oriel Resources plc and no one else in relation to the Acquisitions and will not be responsible to anyone other than Oriel for providing the protections afforded to clients of Canaccord Adams Limited nor for providing advice in relation to the Acquisitions or any matter referred to in this announcement. Morgan Stanley & Co. Limited, which is regulated and authorised in the United Kingdom by the Financial Services Authority, is acting exclusively for IPH Polychrom Holding BV and no one else in relation to the Acquisitions and will not be responsible to anyone other than IPH for providing the protections afforded to clients of Morgan Stanley & Co. Limited nor for providing advice in relation to the Acquisitions or any matter referred to in this announcement. This information is provided by RNS The company news service from the London Stock Exchange |
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