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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Oriel Res. | ORI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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| 0.00 | 0.00% | 121.50 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 121.50 | 121.50 |
| Top Posts |
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Posted at 20/8/2008 18:42 by hywel Announcement out today:Oriel announces that trading in its ordinary shares and warrants on AIM will be cancelled on or around 19 September 2008. I was just thinking today actually that this takeover and the delisting of ORI is dragging on. Another month to go. |
Posted at 25/4/2008 18:42 by p bear Chromex you can keep it. Chr Cr not HC or special grades. Let us not forget ORI had the best Cr Ore in the world (along with ENRC), far, far superior to the southern africans. Plus what good is ore without power. I'd rather buy IFL/ENRC |
Posted at 26/3/2008 10:16 by sg31 Why no RNS from ORI. |
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 27/2/2008 14:52 by supersturrock Coldrolled. Many thanks for the clarification. Originally bought Ori after they floated on the strength of Schevchenko alone. All this is a bonus !!!! |
Posted at 26/2/2008 12:21 by ukgeorge takeover target? or just playing catch up. had got an £100 up bet on these back in november but closed it just before the last drop down to 40p area. have held some ori shares for a couple of years so nice to see them rising. just wish hadnt sold most of them. |
Posted at 17/7/2007 14:38 by hywel Oriel Resources PLC17 July 2007 AIM: ORI TSX: ORL PRESS RELEASE 17 July 2007 Oriel Resources Plc ('Oriel' or the 'Company') Oriel generates first revenue from Tikhvin ferrochrome smelter, Russia and signs off take contract for the Voskhod chrome project, Kazakhstan The Directors of Oriel Resources Plc ('Oriel' or 'the Company'), the London-based chrome and nickel mining and processing company, are pleased to announce the initial sale of high carbon ferrochrome ('HC FeCr') product from the Tikhvin smelter plant, Russia ('Tikhvin') and the signing of a long term off take contract for the purchase of chrome ore product from the Voskhod chrome project, Kazakhstan. Tikhvin's initial batch of saleable HC FeCr product has successfully been sold at approximately US$1.30 per pound, representing Oriel's first revenue from current working projects. Oriel recently completed a long term off take contract with Glencore International AG ('Glencore') to market a significant proportion of Voskhod's annual 900,000t of beneficiated chromite ore product, commencing Q3 2008. Dr Sergey V Kurzin, Executive Chairman of Oriel commented: 'In addition, we are pleased to report that a number of major international metal traders have confirmed their interest in our high carbon ferrochrome product. These initial ferrochrome sales from Tikhvin are a significant milestone in the Company's development as a vertically integrated supplier to the stainless steel industry. We are also pleased to have Glencore join us as an off taker of our Voskhod chrome ore.' |
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 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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