PERTH, Australia, June 8, 2012 /CNW/ - Elemental Minerals Ltd. (ASX,TSX: ELM) ("Elemental" or "the Company") is pleased to announce that the Company's Board of Directors has initiated a process to identify, examine and consider various strategic alternatives available to the Company with a view of maximizing shareholder value. BMO Capital Markets ("BMO") has been retained to assist with this process.
Strategic options may include, but are not limited to, strategic financing opportunities to develop the Sintoukola Project by way of a minority investment by a strategic party, off-take agreement(s) with third parties, and / or other potential value maximizing transactions such as a merger or other transaction involving the Company and a third party.
Commenting on the appointment of BMO, Elemental's CEO, Iain Macpherson stated: "The appointment of BMO as our advisor, given the strong potash credentials the group brings to the table, is the next logical step for the development of our project and company. As a junior we always knew that the financing of this project would be a major task. Given the strategic nature and scalability of our high grade Sintoukola potash deposit, we are confident that we will find partners that will provide capital, complementing our aim to access equity and debt markets once this process has been completed."
The Company cautions that there is no assurance or guarantee that the review process will result in any transaction or, if a transaction is undertaken, of the terms or timing of such a transaction. No definitive schedule has been set for the completion of this process. It is the Company's intention not to provide any updates with respect to the strategic review process unless and until the Board of Directors has approved a specific transaction or has otherwise determined that disclosure is necessary or appropriate.
About Elemental Minerals
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 under the symbol ELM. For more information, visit www.elementalminerals.com
This news release contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this news release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
For further information:
Chief Executive Officer
Tel: +27 (0) 76 238 4461
Tel: +27 (0) 82 445 5291
Investor Relations Manager
Tel: +27 (0) 83 604 0820
Johannesburg Office: +27 11 469 9140