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Bushveld does not support Lemur capital return – CEO

14th August 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals CEO Fortune Majopelo said on Wednesday the company was in favour of Lemur Resources’ strategy of acquiring coal assets in South Africa and that it did not support a capital return to shareholders.

JP Morgan Nominees Australia and ACP Investments, which collectively hold 5.43% of ASX-listed Lemur, have requested a general meeting for October 1 to make certain directorate changes. Should they succeed, the newly elected directors would consider putting a resolution to Lemur shareholders to approve a capital return of A$0.075 a share at a future meeting.

Bushveld currently owns 16.77% of takeover target Lemur and has confirmations of intent to accept from shareholders with a further 27.27% of the issued shares.

Majopelo said that Bushveld did not believe that the resolutions put forward by JP Morgan and ACP Investments had sufficient support to pass.

“Bushveld has made it clear that it supports the current strategy by Lemur’s management and board. The strategy seeks to leverage Lemur’s significant balance sheet to acquire cash-flow producing or near producing assets in the domestic coal market in South Africa, which, in Bushveld’s opinion, is a market with significant and under-priced well-developed coal assets and yet facing dire shortage of coal supply for domestic power generation.”

He added that the proposed return of capital was inferior to the option of leveraging its balance sheet to make acquisitions at steep discounts in depressed market conditions.

JP Morgan and ACP Investments will ask shareholders at the October 1 meeting to consider removing Majopelo and two others – Ryan Rockwood and Anthony Viljoen – as directors of the company.

The two shareholders will also seek to appoint two new directors.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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