WGN Wogen

 

TIDMWGN 
 
RNS Number : 4756Y 
Wogen PLC 
03 September 2009 
 

Statement re Minority Shareholding in Canadian Antimony Mine Inc 
 
 
Wogen plc ("Wogen" or the "Company") notes the announcement made to the Hong 
Kong Stock Exchange by Hunan Nonferrous Metals Corporation Limited ("HNC") that 
it has entered into a sale and purchase agreement with Canadian Antimony Mine 
Inc. ("CAMI") and Beaver Brook Resources Limited ("BBRL") to acquire a 100% 
equity interest, in Beaver Brook Antimony Mine Inc ("BBAM") (the 
"Transaction") for a consideration of US$29.5 million. 
 
 
The majority shareholders of CAMI and BBRL have been looking to resolve the 
long-term funding requirements of BBAM for some time and since the resumption of 
production at the mine in 2008 HNC's related company HsiKwangShan Twinkling Star 
Limited in China has been the principal buyer of output from the mine. 
 
 
The announcement by HNC states that there are a number of conditions precedent 
which must be met before the deal closes, the first of which is the obtaining of 
certain regulatory consents from all appropriate government authorities, 
including the approval of the People's Republic of China. 
 
 
Wogen purchased an interest of 3.46% in the equity of CAMI for an initial 
investment of GBP1.06 million in June 2007. If the Transaction is completed, the 
Company is expected to receive in the region of US$1.2 million (approximately 
GBP0.75 million) in respect of the indebtedness of BBAM to Wogen resulting from 
trading transactions. In addition to this, Wogen may recover a portion of its 
initial investment, although the amount is expected to be significantly less 
than the sum invested.As a result, on completion of the Transaction, there would 
be a release of provisions currently held on the balance sheet which, the 
management believe, could result in a net increase of approximately GBP0.75 
million to the Company's net assets. 
 
 
The Independent Directors of Wogen have considered this matter and do not 
believe it to be material in relation to Sanctuary Partners proposed 
acquisition, via a scheme of arrangement, of Wogen (the "Scheme of Arrangement") 
and continue to recommend Wogen shareholders to vote in favour of the Proposals 
as set out in the Scheme Circular posted to Wogen Shareholders on 18 August 
2009. 
 
 
It is not expected that the Transaction will reach a conclusion before 2 October 
2009, being the date currently anticipated as the effective date for the Scheme 
of Arrangement. 
 
 
Wogen will keep the market updated on further developments. 
 
 
Enquiries 
 
 
+-------------------------------------------------+------------------------+ 
| Wogen Plc                                       | Tel: 44 (0)20 7222     | 
| Michael Hutchinson                              | 2171                   | 
|                                                 |                        | 
+-------------------------------------------------+------------------------+ 
| Canaccord Adams (financial advisers to Wogen)   | Tel +44 (0)20 7050     | 
| Simon Bridges                                   | 6500                   | 
| Henry Fitzgerald-O'Connor                       |                        | 
+-------------------------------------------------+------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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