Natasa Mining Limited Proposed cancellation of admission to AIM (1304G)

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RNS Number : 1304G

Natasa Mining Limited

27 February 2015

Natasa Mining Ltd

("Natasa" or the "Company")

Proposed cancellation of the admission of the Company's shares to trading on AIM

Natasa, the mining investment company, announces that, following discussions with its major shareholders, the Company is intending to put to shareholders proposals to cancel the admission of its ordinary shares to trading on AIM ("De-listing").

Given that general market conditions for the mining sector, on which the Company's investment strategy is focussed, have for a number of years been, and are expected for the foreseeable future to continue to be, difficult, the Company remains in an effectively dormant stage with regard to the making of new investments and, accordingly, does not anticipate having any requirement to raise new funds from the market in the immediate future.

The Directors believe that Natasa will be able to pursue its investment strategy as a private company and consider that the benefits of a listing on AIM are out-weighed by the costs incurred in maintaining such a listing. Accordingly, the Directors believe the De-listing to be in the best interests of the Company's shareholders as a whole. Particular consideration has been given by the Board to the very low liquidity in the Company's shares which have been trading at a substantial discount to net asset value for some time.

In order to give shareholders the opportunity to realise their investment in the Company in full should they wish to do so, given that the De-listing is likely to substantially reduce shareholders' ability to deal in the Company's shares, the Company currently proposes to make a tender offer to all qualifying shareholders at 30p per share, or an equivalent amount in other selected currencies ("Tender Offer"), in conjunction with the De-listing. The Tender Offer will be funded, either through the liquidation of sufficient of the Company's listed investments or the borrowing against its listed investments to repurchase such tendered shares into treasury.

The Company's major shareholders, who between them hold 63.9 per cent. of the Company's issued shares, have indicated that they intend to remain shareholders in the Company post the De-listing. The Company has received indications from each of these shareholders that they intend to vote in favour of the De-listing and that they do not intend to tender for sale any proportion of their shareholdings.

Following the De-listing, it is not intended that there will be any market facility for dealing in the ordinary shares and no price will be publicly quoted for the ordinary shares, nor will the Company be required to announce material events or financial results. In addition, it is intended that the Depositary Interest and CREST facility will be cancelled following completion of the Tender Offer which will significantly impact shareholders' ability to trade in the Company's ordinary shares. The Company will endeavour to facilitate trading in the ordinary shares among any remaining Shareholders in due course, but cannot make any assurances that a purchaser will be available or as to the price which may be agreed.

The Company is seeking to effect the De-listing by 2 April 2015 and, therefore, a circular to shareholders convening an extraordinary general meeting of the Company at which the De-listing will be proposed and giving details of the Tender Offer, will be despatched shortly.

In addition, the Directors currently have authority to purchase up to 2,924,195 ordinary shares in the Company to hold in treasury or cancel as the Directors determine. The Directors intend to immediately commence making purchases of ordinary shares pursuant to this authority. This will be effected by Optiva Securities Ltd, the Company's broker in the transaction, standing in the market to acquire ordinary shares in the Company at a price of up to 30 pence each, until such time as the authority is fully utilised or the De-listing occurs. Interested shareholders should contact their stockbroker or financial adviser to effect the on-market sale of their shares.

- Ends -

Enquiries:

Natasa Mining Ltd

Chrisilios Kyriakou, Chairman

[phone]

Strand Hanson Limited

Angela Hallett / James Spinney

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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