Petmin acquires 25% stake in Veremo Holdings

May 23, 2008

May 23 (Mineweb) – JSE- and AIM-listed mining company, Petmin Limited, announced today that it now holds a 25% interest in Veremo Holdings Limited, following the conclusion of the transaction announced in November 2007.  

Commenting on the transaction, Bradley Doig, COO of Petmin, said, “This acquisition adds iron to Petmin’s portfolio of anthracite and silica assets, and takes the company a step further on its growth path of developing into a multi-commodity business.”

The balance (75%) of the equity is held by Framework Investments Limited, a wholly-owned subsidiary of Kermas Limited, a substantial indirect shareholder in Samancor Chrome Limited, South Africa’s second largest producer of ferrochrome. 

Petmin has settled the balance of its obligations in terms of the transaction through the payment of R4,275,000 in cash and the issue of the 7,077,586 new ordinary shares of R0.25, at an average price of R4.50, representing a premium of 25% to the Volume Weighted Average Share Price on 31 October 2007 – the date on which the transaction was concluded. The new shares are expected to trade from Friday, 30 May 2008 and the issue of shares represents an increase of 1.34% in the issued share capital of the company. 

Petmin and the Kermas Group will develop and commission the Veremo project, which is a substantial iron ore deposit on the eastern limb of the Bushveld Complex near Stoffberg in Mpumalanga Province. A listing of the project will be considered in the future.

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