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SNR continuing talks with potential investors

17th July 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – London-listed junior Strategic Natural Resources (SNR) is continuing discussions with potential investors and said on Wednesday it remained optimistic that it would conclude a transaction in the near future.

The company is looking for an investment from a new partner to help it repay its short-term bridging finance, which is due by the end of the month, as well as to accelerate the development of the Elitheni mine, in South Africa’s Eastern Cape.

SNR said Land Consultants Limited (LCL) has indicated that it is willing to extend the July 30 loan repayment deadline to allow for the completion of an investment by a strategic investor, should an extension be required.

In the event that SNR fails to secure an investment, the board would renegotiate the payment of the LCL facility and consider alternative ways of repaying its debt, including issues of equity or the taking on of additional funding.

“It continues to be the board's intention that any investment in SNR would not trigger an offer under the Takeover Code or that any investment in the company's 74%-owned subsidiary, Elitheni Coal would result in the company's shareholding in Elitheni falling below 51.0%,” the coal miner stated.

Edited by Creamer Media Reporter

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