Announcement of Disposition for US$14 Million (4565Z)

TIDMFLOR

RNS Number : 4565Z

Fluormin PLC

15 March 2012

Fluormin plc

("Fluormin" or the "Company")

LONDON, UK -- (15 March 2012) - Fluormin Plc (AIM: FLOR) ("Fluormin" or the "Company") announces that it has reached agreement with the majority owner of Kenya Fluorspar Company Limited ("KFC") to sell its 20% interest in KFC for US$13,000,000. The cash consideration will be paid as to US$6,500,000 on or before 30 April 2012 and the balance of US$6,500,000 on or before 30 November 2012. The holding value of the 20% stake of KFC is approximately US$2,275,000, thereby realising a profit for the Company of approximately US$10,725,000.

Furthermore and pursuant to the agreement, the shareholders of KFC have also agreed to effect a dividend of US$5,000,000 (US$1,000,000 attributable to Fluormin), subject to KFC Board approval. Should such approval not be granted, or the dividend otherwise not be paid, then the first tranche of cash consideration due in respect of the disposition (US$6,500,000) shall be increased to US$7,500,000.

Mark Bolton, Co-Chief Executive Officer, stated: "The Company continues to examine the merits of an expansion and upgrade of ore feed into its Witkop plant. The disposition of our interest in KFC improves our ability to undertake this investment should the scoping study prove positive. Against the backdrop of weakened fluorspar prices, this study will point to the ongoing viability of the Witkop mine at lower fluorspar prices."

An update on the Company's scoping study, together with our financial results for the six month period ended 31 December 2011, is anticipated by month end.

About Fluormin Plc

Fluormin is a producer of acid grade fluorspar, an industrial mineral widely used in the chemical and aluminum industries for the making of products such as HFCs (Hydrofluorocarbons used as refrigerant gases like Freon (TM)) and aluminum fluoride.

Contact Information

 
Fluormin plc 
 
Al Gourley, Joint Chief Executive   (44)020-7556-0940, [e-mail] 
 Officer 
 
Mark Bolton, Joint Chief Executive  (44)020-7556-0940, [e-mail] 
 Officer 
 
 Westhouse Securities 
 
Martin Davison                      (44)020 7601 6100, [e-mail] 
 
Tim Feather                         (44)020 7601 6100, [e-mail] 
 
 Tavistock Communications 
 
Lydia Eades                         (44)020 7920 3150, [e-mail] 
 
Jos Simson                          (44)020 7920 3150, [e-mail] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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