Elemental Minerals Limited (ELM.TO) provided an update in
respect of the approach it has received from Dingyi Group
Investment Limited relating to an indicative, non-binding,
incomplete and conditional potential transaction, the details of
which were announced by Elemental on 12 April 2013.
Confirmatory due diligence substantially complete: Dingyi has
confirmed that it has now substantially completed its confirmatory
due diligence review on Elemental in that it has completed the
investigation phase of its due diligence and all existing questions
have been addressed. The confirmatory due diligence review will be
completed upon review and consideration of the final reports of its
advisors, anticipated to be received in the week commencing 13 May
Extension of exclusivity period and shareholder support: In
order to enable Elemental and Dingyi time to negotiate and, if
terms can be finalised, execute a definitive bid implementation
agreement, the parties have agreed to a mutual extension of the
exclusivity period to 31 May 2013.
Commensurate with the extension of the exclusivity period, Pala
Investments Limited together with John Ian Stalker and Fiducs
Limited (an entity controlled by Mr Stalker) (the Supportive
Shareholders) have agreed to an extension of their letters of
intent with Dingyi until the earlier of signing a mutually agreed
pre-bid agreement or 31 May 2013. Each Supportive Shareholder has
authorised Elemental to include this paragraph in this
Further details of the exclusivity and cost reimbursement deed
between Elemental and Dingyi and the arrangements between Dingyi
and the Supportive Shareholders are outlined in Elemental's
announcement on 12 April 2013.
Conclusion: The Board of Elemental looks forward to continuing
to work closely with Dingyi over the coming weeks to progress the
Proposal. The market will be kept informed of developments and the
Board remains committed to optimising value for shareholders and
will continue to act in their best interests as the negotiations
progress. There can be no guarantee that these negotiations will
result in a binding transaction.
Elemental Minerals Limited is an advanced mining exploration and
development company that aims to grow shareholder value through its
93%-owned Sintoukola Potash Project on the Republic of Congo
coastline. Elemental Minerals is dual listed on the Australian
Stock Exchange and the Toronto Stock Exchange
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