International Ferro Metals Chromite Supply Agreement Reached

 
TIDMIFL 
 
21 January 2016 
 
International Ferro Metals Limited 
 
                           ("IFL" or the "Company") 
 
       Chromite Supply Agreement with Rustenburg Platinum Mines Limited 
 
Further to the announcement on 29 December 2015, the Company announces that its 
South African subsidiaries, International Ferro Metals (SA) (Pty) Limited 
("IFMSA") (in business rescue) and International Ferro Metals SA Holdings (Pty) 
Ltd ("IFMSAH") have entered into a settlement agreement with Rustenburg 
Platinum Mines Limited ("RPM") regarding its interests under a chromite supply 
agreement under which RPM is obliged to supply UG2 chrome ore to IFMSA. 
 
The terms of the settlement are that RPM will supply IFMSA with 10,000 tonnes 
of UG2 per month for calendar year 2016 at no cost and 7,500 tonnes per month 
from January 2017 to November 2020 at a cost of ZAR170 per tonne. The backlog 
of approximately 57,000 tonnes at the end of December 2015 will be supplied at 
a rate of 10,000 tonnes per month from January 2016, also at no cost. The 
original contract provided for RPM to supply 15,000 tonnes per month until 
November 2020 at no cost. 
 
The settlement has eliminated the uncertainty surrounding the supply agreement 
and accordingly will assist the asset sale process currently being conducted. 
However it has a material impact on the agreement's value and consequently on 
the value of the assets of IFMSA. As a result, there will be a material impact 
on the purchase consideration to be payable by Samancor for the assets of 
IFMSA. The business rescue practitioner will propose an amendment of the 
business rescue plan to the creditors of IFMSA to take account of the 
settlement agreement reached in respect of the supply agreement and the impact 
of the anticipated price adjustment and resultant distribution to creditors. A 
meeting of creditors will be convened to vote on the proposed amendment to the 
business rescue plan. 
 
It is not expected that that the timing of the proposed transaction with 
Samancor will be materially impacted. 
 
Further announcements in relation to the business recue proceedings will be 
released in due course. 
 
                                    - ENDS- 
 
For further information please visit www.ifml.com or contact: 
 
International Ferro Metals Limited        Tel: [phone] 
 
Chris Jordaan, Chief Executive Officer 
 
Numis Securities Limited                  Tel: [phone] 
 
James Black / John Prior / Paul Gillam 
 
About International Ferro Metals: 
 
International Ferro Metals produces ferrochrome, the essential ingredient in 
stainless steel, from its integrated chromite mine and ferrochrome processing 
operations in South Africa.  International Ferro Metals is listed on the London 
Stock Exchange under the symbol IFL. 
 
Forward Looking Statements 
 
This announcement contains certain forward looking statements which by nature, 
contain risk and uncertainty because they relate to future events and depend on 
circumstances that occur in the future.  There are a number of factors that 
could cause actual results or developments to differ materially from those 
expressed or implied by these forward looking statements. 
 
 
 
END 
 

(END) Dow Jones Newswires

January 21, 2016 02:00 ET (07:00 GMT)