CMO - CHROMETCO LIMITED - Progress Update and Renewal of Cautionary Announcement

CHROMETCO LIMITED 

(Incorporated in the Republic of South Africa) 

(Registration number: 2002/026265/06) 

Share code: CMO 

ISIN Code: ZAE000070249 

(“Chrometco” or “the Company”) 

 

PROGRESS UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT

 

1. INTRODUCTION

 

Shareholders are referred to the announcement released on SENS on 25 August 2016 wherein the Company announced that it had entered into agreements to recapitalise the Company by way of a subscription agreement for R5 million and a loan facility of R10 million.

 

The Company also announced that it had entered into an agreement to acquire 51% of Palm Chrome Holdings Proprietary Limited (“Palm Chrome”) in exchange for 200 million Chrometco ordinary shares (“Palm Chrome Acquisition”).

 

Furthermore, the Company announced that it had entered into an agreement to acquire 51% of Black Chrome Holdings Proprietary Limited (“Black Chrome”) and 25% of the commodity trading company, Sail Minerals Proprietary Limited (“Sail”) in exchange for 2 205 million Chrometco ordinary shares (“Black Chrome Acquisition”). 

 

2. PROGRESS UPDATE

 

Shareholders are advised that the due diligence process undertaken by Chrometco on Black Chrome, Palm Chrome and Sail Minerals has been completed with a satisfactory outcome. 

 

Sail brought the Black Chrome mine  into production over the September and October period, and production is being ramped up. Shareholders are further advised that the Company is working diligently with vendors and various geological and technical experts, including the Competent Person who will sign off the various Competent Persons Reports which will include Resource Statements, to provide all the necessary information required by the JSE for inclusion in the transaction circular to be distributed to shareholders. As part of this exercise twin hole drilling is required at Black Chrome to verify and update the geological report to JSE standards.