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AMCOL International Corporation Message Board

  • steve_382 steve_382 Oct 14, 2009 10:00 AM Flag

    CCI Letter to shareholders

    Found this with a google search. At the end of this excerpt, CCI says they are getting less for the sale than expected, so Amcol must be getting a better deal.


    CHROME CORPORATION LIMITED AND CONTROLLED ENTITIES ABN 30 003 207 467 2 CHAIRMAN'S LETTER TO SHAREHOLDERS
    Dear Shareholders It is my pleasure as your new Chairman to present you with the Chrome Corporation Limited ("CCI") Annual Report for the year ending 30 June 2009.
    Although appointed subsequent to balance date, I have closely followed CCI as a shareholder during the year. In the world that was CCI significant success, volatility and change has occurred, whilst in the larger economic environment in which we exist, the past year has been one of unprecedented financial, equity and metal market volatility.
    The previously announced and approved sale of the Ruighoek Chrome Project to AMCOL International Corporation experienced delays in settlement and eventually a partial settlement was completed in February 2009. An option to acquire arrangement at the discretion of AMCOL and a deferred put option arrangement in favour of CCI has been established to
    enable a deferred completion of the sale without significant disadvantage or variation from the initially agreed sale price. CCI however have endured erosion in the expected final value due to strong appreciation in the Australian Dollar exchange rates and remains exposed to these fluctuations.

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    • Implication is that price is in US dollars, but Chrome reports revenues in Australian dollars, not that ACO is getting a better deal. Off the top of my head, wasn't business in South Africa,not Australia? Seller could still be an Australian company.

      • 1 Reply to akaplan_98
      • Here is part of the earlier ACO news release. Looks like CCI is listed on the Australian exchange and the deal was priced in AU bucks.


        ARLINGTON HEIGHTS, Ill., March 5, 2008 /PRNewswire-FirstCall/ -- AMCOL International Corporation (NYSE: ACO) today announced that it has executed a definitive agreement to acquire an interest in a chrome mine in the Republic of South Africa ("RSA"). Chrome ore is a feedstock used to produce chrome sand. AMCOL currently markets chrome sand to the metalcasting industry in the U.S. AMCOL will purchase the 74% interest in the chrome mine from Chrome Corporation Limited (ASX CCI), a publicly listed company on the Australian Stock Exchange. Aka Capital, a Black Economic Empowerment Enterprise, owns the remaining 26% interest in the chrome mine. Separately, AMCOL is in discussions with an RSA-based firm to co-invest in the chrome mine, processing operations and downstream marketing. AMCOL anticipates it will retain control of the business.

        AMCOL will pay A$41 million cash for the interest in the chrome mine, less assumed liabilities at closing. The closing of the transaction is subject to a number of conditions, including the following: the approval of the seller's shareholders; consent under Section 11(1) of the Mineral and Petroleum Resources Development Act from the South African Minister for Minerals and Energy; confirmation of the existing prospecting rights or the grant of a renewal of the prospecting rights; approval from the RSA Exchange Control Authorities; unconditional approval from RSA Competition Authorities; and consent from AMCOL's bank syndicate.