Elemental Minerals Update on the Dingyi Proposal

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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 2013.

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 announcement.

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



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

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