Announcement: Acquisition of Kemet`s 50% shareholding in Tantalum Aust P/L
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Kemet sold their stake in the JV for $250K.
I seem to recall Kemet paying $10mil less that two years ago.
Correct ??
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Date: 03 January 2002 - 11:03:05
Market Sensitive: Yes
AUSTRALASIAN GOLD MINES NL 2002-01-03 ASX-SIGNAL-G
ASX Code: ATE
HOMEX Perth
Australasian Gold Mines NL ("ATE") has exchanged a letter of
agreement with KEMET Tantalum Pty Ltd ("KEMET"), whereby ATE will
acquire KEMET's 50% shareholding in Tantalum Australia Pty Ltd
("Tantalum Australia") for $250,000. The off-take agreement currently
in place between KEMET and Tantalum Australia will be terminated,
which will - importantly - enable Tantalum Australia to deal with
other customers and significantly broaden its customer base beyond
the electronics industry.
The acquisition is subject to suitable definitive agreements being
entered into, and to the approval of ATE shareholders.
Mr Charles Culbertson II, President and Chief Operating Officer of
KEMET Corporation, commented that:
"One of the primary objectives underlying the establishment of
Tantalum Australia was to create a new, independent source of
tantalum concentrate for the world market. With the successful start
up of Tantalum Australia's Dalgaranga and Balcatta facilities
together with the identification of additional promising tantalum
resource deposits, this primary objective has now been met."
KEMET has indicated its intention to retain its shareholding in ATE,
and to continue to be represented on the ATE board through Mr
Culbertson.
Tantalum Australia is currently in negotiations with 3 other
potential customers located in Europe, Japan and the United States.
These customers have completed site inspections of Tantalum
Australia's Dalgaranga and Balcatta facilities. Samples of finished
product have been supplied for specification assessment and
discussions are continuing regarding off-take agreements.
ATE has taken the opportunity to acquire the 50% equity position in
Tantalum Australia held by KEMET to regain full control of its
tantalum business. Whilst the price of tantalum has diminished
significantly over the last 6 months, ATE considers that the long
term outlook for tantalum is very positive, and that the acquisition
of the balance of Tantalum Australia has significant potential to add
value for ATE shareholders over the medium term.
M Fotios
MANAGING DIRECTOR |
