|By PR Newswire||
|September 6, 2013 05:41 AM EDT||
ST HELIER, Jersey, September 6, 2013 /PRNewswire/ --
Consolidated Minerals Ltd (Consmin) announces today that Consolidated Minerals Pty Ltd, a wholly-owned Australian subsidiary of Consmin, has sold its entire shareholding in BC Iron Limited, a company listed on the Australian Securities Exchange, in transactions facilitated by Macquarie Securities (Australia) Limited.
The shareholding of 28,522,712 ordinary shares in BC Iron Limited was sold at a price of A$3.90 per share. The total gross proceeds will be approximately A$111.2 million. Settlement is expected to take place on 11 September 2013.
Gennady Bogolyubov, the beneficial owner of Consmin, said: "I am very satisfied with the transaction undertaken by the management of Consmin as a part of the optimization of the investment portfolio of the company. Consmin has always been a non-strategic investor in BC Iron; the shareholding was not a core asset of the company.
I would like to express my gratitude to the Board of BC Iron, in particular to the Chairman Tony Kiernan, the managing director Morgan Ball, former managing director Mike Young and non-executive director Malcolm McComas for the rapid development and considerable achievements of BC Iron in recent years, and wish them further success."
David Slater, the CFO of Consmin, said: "Consmin intends to ensure that the proceeds from the sale are applied in compliance with the requirements of the indenture governing its 8 7/8% Senior Secured Notes due 2016, which may include capital expenditure or funding of exploration activities in the next year. Consmin is currently preparing its capital expenditure budget for 2014. In addition to the regular capital expenditure and exploration budget, Consmin will consider accelerating some potential capital projects in light of the sale".