- TEAL shareholder meeting date set, following the signing of a
definitive agreement between TEAL, ARM and Vale relating to the
proposed acquisition of the shares currently held by TEAL minorities
at a price of C$3.00 per share.
- Pending shareholder acceptance and the satisfaction of other closing
- TEAL will be delisted from TSX and JSE;
- ARM and Vale intend to form a 50:50 joint venture to further
develop TEAL's asset base.
- At Konkola North in Zambia, a total of 4,273 metres of exploration
drilling was completed over the quarter, which included:
- Borehole KN 44: 16.26m from 1,246m depth for 7.38% Cu;
- Borehole KN 46: 12.99m from 1,060m depth for 3.95 Cu;
- Borehole KN 50: 3.42m from 1,028m depth for 2.19% Cu.
TORONTO, Feb. 6 /CNW/ - TEAL Exploration & Mining Incorporated (TSX-"TL")
(JSE-"TEL") ("TEAL" or the "Company") has informed its shareholders in a
Notice of Special Meeting and Management Proxy Circular mailed on January 23,
2009 that a shareholders meeting has been scheduled for February 13, 2009.
This follows the announcement, on December 15, 2008, that TEAL had
entered into a definitive agreement with its major shareholder, African
Rainbow Minerals Limited ("ARM") and Companhia Vale do Rio Doce ("Vale")
relating to the proposed acquisition of all of the outstanding common shares
of TEAL, not already owned by ARM, at an offer price of C$3.00 per share. The
cash purchase price will be funded by way of an equity investment by Vale in
TEAL. This will result in ARM and Vale forming a 50:50 joint venture for the
future development and operation of TEAL's assets.
The offer price represents a premium of: (i) 329% over the closing price,
which was C$0.60, of the TEAL shares on the Toronto Stock Exchange ("TSX") on
December 15, 2008; (ii) 822% over the 30-day volume weighted average price of
the TEAL shares on the TSX for the period ended December 15, 2008; and (iii)
879% over the 20-day volume weighted average price of the TEAL shares on the
TSX for the period ended December 15, 2008.
Completion of the transaction is subject to various conditions, including
receipt of certain regulatory approvals, as well as approval at the special
meeting of the shareholders of TEAL by (i) at least two-thirds of the votes
cast by holders of TEAL shares in attendance at the special meeting by person
or by proxy, and (ii) a simple majority of the votes cast by shareholders
other than ARM and its affiliates. It is also subject to approval by the
Supreme Court of the Yukon Territory in Canada. Subject to these approvals
being obtained, TEAL management expects that the Company will be delisted from
the TSX and JSE by the end of the first quarter of the 2009 calendar year.
Exploration and Development
On the southern section of the Konkola North property in Zambia, four
exploration drill holes were completed on Area 'A' for a total of 4,273 metres
over the last quarter:
- Borehole KN 44(*): 16.26m from 1,246m depth for 7.38% TCu, 1.26% ASCu
and 0.034% TCo;
- Borehole KN 46(*): 12.99m from 1,060m depth for 3.95% TCu, 0.6% ASCu
and 0.04% TCo;
- Borehole KN 50(*): 3.42m from 1,028m depth for 2.19% TCu, 1.76% ASCu
and 0.026% TCo;
- Borehole KN 51: awaiting assay results.
(*)All true widths
TEAL refers to the two areas at the northern end of the Konkola North
property as the South and East limbs. A revised feasibility study, which is
targeting a 2.5Mt a year run-of-mine operation on these two areas, is being
finalized. Existing infrastructure at the South Limb area includes a 423-metre
deep, vertical and concrete lined shaft, with head-frame, two ventilation
shafts and three main access haulage levels, interlinked with several
At Kalumines in the Democratic Republic of the Congo ("DRC"), TEAL has
focused its resource definition, feasibility study work and initial mine
production on the Lupoto Copper Project, while exploration drilling is also
underway at the Greater Kasonta Area. Over the last quarter, 198 boreholes
were drilled for a total of 11,895 metres, including shallow stockpile
verification drilling, further drilling at the Lupoto Copper Project, the
Kasonta South area and at the Maga prospect. Phase two drilling at the Lupoto
Copper Project has been completed and 88 boreholes for 15,280 metres were
drilled since June 2008 to verify both strike and down-dip extensions (to 150
metres vertical depth). Logging and sample processing is in progress. When all
assay results are received for Lupoto, geological modelling and resource
definition work will commence. On the Kasonta South area, 21 boreholes for
nearly 4,000 metres have now been drilled. The geology and the copper
mineralization is well defined in this area and further drilling on 50m x 50m
centers is planned in the next field season.
TEAL's small-scale mining operation at Lupoto continues at the reduced
mining rate of 50,000m(3) a month.
As a result of the scaled-down mining rate and the suspension of
deliveries in terms of certain copper concentrate contracts at the Lupoto
Copper Project, TEAL generated lower revenues for the three months ended
December 31, 2008 of US$1.6 million (September 30, 2008: US$3.9 million).
After adjusting stock to net realizable value, it resulted in a negative
contribution from sales of US$14 million (US$0.4 million - contribution).
After other expenses, principally exploration and development costs of US$7.2
million (US$10.2 million), the net loss amounted to US$37.2 million (US$14.1
million - loss), or US$0.69 loss per share (US$0.26 - loss per share).
As at December 31, 2008, the Company had available cash of US$0.8
million. TEAL has fully utilized the unsecured US$85 million loan facility,
which is repayable on August 31, 2009 and which is guaranteed by ARM. TEAL has
received a letter of financial support from ARM, which provides the Company
with financial assistance amounting to ZAR385 million up to September 30,
2009. This will allow the Company to cover liabilities and commitments in the
ordinary course of business. Amounts totaling ZAR115 million, equivalent to
$11.6 million, were drawn on this facility by December 31, 2008.
Mr. Claus Schlegel, Pr. Sci. Nat. (No. 400149/90), TEAL's Vice President:
Exploration and Business Development, is the "qualified person" for the
content of this press release for purposes of National Instrument 43-101.
TEAL is incorporated under the laws of the Yukon, Canada and its common
shares are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited
("JSE"). The common shares of the Company trade under the symbol "TL" on the
TSX and "TEL" on the JSE.
TEAL is a mineral development and exploration company with development
projects and exploration areas in the DRC, Zambia, Namibia, and Mozambique.
TEAL has a portfolio of base and precious metal development projects and
complementary exploration areas, and the Company continues to seek other
opportunities, mainly in southern and central Africa. TEAL has targeted
specific projects: the Konkola North Copper Project in Zambia; the Otjikoto
Gold Project in Namibia; and the Kalumines Copper-Cobalt Project in the DRC.
TEAL also has interests in various other mineral licence areas in Zambia and
in Namibia on which the Company continues drilling and other exploration
Forward-Looking Information: Statements contained in this news release
that are not historical facts are forward-looking statements that involve
risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from those
expressed or implied by such forward-looking statements. Although TEAL
believes that the assumptions inherent in the forward-looking statements are
reasonable, undue reliance should not be placed on these statements, which
only apply as of the date of this press release. TEAL disclaims any intention
or obligation to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise. This press release
shall not constitute an offer to sell or the solicitation of an offer to buy
securities of TEAL in any jurisdiction.
For further information:
For further information: Julian Gwillim, (VP: Investor Relations and
Corporate Development) on +27 (0) 82 4524 389; or email@example.com