Jun 5 2007
Xstrata plc announces that it has today notified the Board of LionOre Mining International Ltd. ("LionOre") that it is not matching the offer made by OJSC MMC Norilsk Nickel ("Norilsk") by increasing the consideration payable under Xstrata's offer (the "Offer") to acquire all of the issued and outstanding LionOre shares.
On 24 May 2007, LionOre’s Board declared that Norilsk’s offer was a superior proposal under the terms of the support agreement entered into between Xstrata and LionOre on 25 March 2007, as amended. Under this support agreement, Xstrata had the right to match Norilsk’s offer on or prior to Friday 1 June 2007. LionOre notified Xstrata on 24 May 2007 that, should Xstrata elect not to exercise its right to match, LionOre will terminate the support agreement pursuant to a provision of the support agreement that requires LionOre to pay to Xstrata a termination payment of C$305 million either prior to or concurrently with the termination.
Xstrata also announces the extension of the expiry time for Xstrata's Offer of C$25.00 per LionOre share from Thursday 7 June 2007 to midnight (Vancouver time) on Friday 15 June 2007. All other terms and conditions of Xstrata's Offer described in Xstrata's offer and offering circular dated 5 April 2007, as varied, amended and supplemented by Xstrata's notice of variation dated 15 May 2007 and notice of extension dated 28 May 2007, remain unchanged.
Xstrata expects to mail a formal notice of extension to all LionOre shareholders on or about 5 June 2007.