Global Alumina Discloses Discussions Regarding Sale of Company



    TORONTO, Oct. 18 /CNW/ -- Global Alumina Corporation (the "Company")
(TSX: GLA.U) announced today that it is in discussions with a third party
concerning a possible sale of the Company.  Discussions have proceeded on the
basis of a price of $2.65 per share and are intended to continue on an
exclusive basis for a specified period to be agreed.  However, the offer
price, terms and structure of any potential transaction have not been agreed
to by the parties. Any agreement to proceed with a potential transaction would
be subject to the prospective buyer's undertaking an extensive due diligence
review of the Company, only after which could the offer price be determined.
The Company has retained GMP Securities L.P. as financial advisor to assist in
evaluating a possible transaction.
    This announcement is being made at this time at the request of Market
Surveillance on behalf of the Toronto Stock Exchange.  Shareholders and others
should not assume that this or any other sale transaction will be agreed to or
completed at the indicative price or at all.
    
    About Global Alumina
    
    Global Alumina and its joint venture partners are developing a 3.2
million tonnes per annum alumina refinery located in the bauxite-rich region
of the Republic of Guinea (the "Sangaredi Refinery Project").  It's joint
venture partners are Global Alumina International, Ltd., a wholly owned
subsidiary of the Company, BHP Billiton, Dubai Aluminium Company Limited and
Mubadala Development Company PJSC.  The Sangaredi Refinery Project is one of
the most advanced new projects in Guinea with the refinery already in
feasibility stage and critical path infrastructure and site work already
underway.  Global Alumina is positioned to be one of the only companies
focused solely on alumina production and sales.  The Company offers a first
mover advantage over other projects in the region and an opportunity for
socially responsible investing in a country that holds over one-third of the
world's bauxite resources.  Global Alumina is headquartered in Saint John, New
Brunswick with operations in Boke, Guinea and has administrative offices in
New York, London, Montreal and Conakry, Guinea. For further information visit
the company's website at www.globalalumina.com.
    
    Forward Looking Information
    
    Certain information in this release is "forward looking information",
which reflects management's expectations regarding the Company's future
growth, results of operations, performance and business prospects and
opportunities.  In this release, the words "may", "would", "could", "should",
"will", "intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate" and "expect" and similar expressions, as they relate to the
Company, are often, but not always, used to identify forward looking
information.  Such forward looking information reflects management's current
beliefs and is based on information currently available to management. Forward
looking information involves significant risks and uncertainties, should not
be read as a guarantee of future performance or results, and will not
necessarily be accurate indications of whether or not or the times at, or by
which, such performance or results will be achieved.  In particular, this
release contains forward looking information pertaining to the following: the
achievement by the joint venture Company, Guinea Alumina Corporation Ltd.
("Guinea Alumina"), of certain milestones set out in the subscription
agreement among Guinea Alumina and its shareholders, the joint venture
partners, (the "Subscription Agreement"); the conduct of the joint venture
with respect to the Sangaredi Refinery Project; the timing of completion of a
feasibility study of the Sangaredi Refinery Project and the making of a
decision to proceed with the development of the Sangaredi Refinery Project;
expectations regarding the debt financing of the Sangaredi Refinery Project,
the timing and amount of such financing and the sources of financing; the
amount, nature and timing of capital expenditures; the timing of refinery
construction and mine start up; bauxite reserve and resource quantities; the
ultimate recoverability of reserves; future production levels; expectations
regarding the negotiation of contractual rights; prices for alumina and
aluminium; operating and other costs; treatment of Guinea Alumina under the
fiscal terms of the "tax exhibit" to the Basic Agreement with the Government
of Guinea (as described in the Company's Annual Information Form dated March
29, 2007, the "AIF") and the negotiation and terms of agreements relating to
the access of Guinea Alumina to and use of certain infrastructure required for
the development and operation of the Sangaredi Refinery Project and business
strategies and plans of management with respect to the Sangaredi Refinery
Project.  A number of factors could cause actual results to differ materially
from the results discussed in the forward looking information, including, but
not limited to: the failure or delay of Guinea Alumina to fulfill the
conditions precedent necessary for the subsequent subscription payments under
the Subscription Agreement to become available to the Company; the limited
control by the Company of the assets and operations of the Sangaredi Refinery
Project and its inability to make major decisions with respect to the
Sangaredi Refinery Project without agreement from the other joint venture
partners; the requirement that the Company hold 85% of subscription proceeds
received pursuant to the Subscription Agreement in escrow and the possibility
the Company may need to seek additional financing to fund corporate expenses
and Sangaredi Refinery Project costs; a delay in finalizing debt financing for
the Sangaredi Refinery Project and/or the amount of such financing being
insufficient to fund the Sangaredi Refinery Project to complete development;
the possibility that the Company's interest will be diluted if it is unable to
meet a capital call with respect to the Sangaredi Refinery Project; the
current political and economic risks of investing in a developing country; the
failure of the joint venture partners to approve plans for the development of
the Sangaredi Refinery Project after completion of the feasibility study;
construction risks such as cost overruns, delays and shortages of labour,
materials or equipment; the Company's dependence on an interest in a single
mining property; the possible forfeiture of the Mining Concession (as defined
in the Company's AIF) in certain circumstances; operational risks such as
access to infrastructure and skilled labour; currency fluctuations; price
volatility of alumina, aluminium or raw materials; and certain other factors
related to the Sangaredi Refinery Project discussed under the heading "Risk
Factors" in the Company's AIF.  Although the forward looking information
contained in this release is based upon what management of the Company
believes are reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with this forward looking information.  If
the assumptions underlying forward looking information prove incorrect or if
other risks or uncertainties materialize, actual results may vary materially
from those anticipated in this release.  This forward looking information is
made as of the date of this release, and the Company assumes no obligation to
update or revise it to reflect new events or circumstances.




For further information:

For further information: Michael Cella of Global Alumina,
+1-212-351-0010,  cella@globalalumina.com; Barbara Cano of Breakstone Group,
+1-646-452-2334,  bcano@breakstone-group.com Web Site:
http://www.globalalumina.com

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Global Alumina Corporation

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