TEAL Exploration & Mining has entered into a definitive agreement with African Rainbow Minerals (ARM) and Cia Vale do Rio Doce (Vale) relating to the proposed acquisition of all of the outstanding common shares of TEAL not already owned by ARM, pursuant to a court approved plan of arrangement at a price of C$3.00 per common share. TEAL has also been informed that concurrently with the Arrangement, ARM intends to form a 50:50 joint venture with Vale for the future development and operation of TEAL’s assets.
The cash purchase price will be funded by way of an equity investment by Vale into the consolidated operations of TEAL. Its assets include exploration and development programs for copper and cobalt in Zambia and the DRC, as well as a gold exploration program in Namibia. ARM currently holds approximately 65% of TEAL and proposes to establish this joint venture through a series of inter-conditional transaction steps.
TEAL has targeted specific projects: the Konkola North copper project in Zambia; the Otjikoto gold project in
Namibia; and the Kalumines copper-cobalt project in the DRC. www.tealmining.com www.arm.co.za www.vale.com