OREANDA-NEWS. February 24, 2010. EURASIAN NATURAL RESOURCES CORPORATION PLC, common shares of which are present in Kazakhstan Stock Exchange (KASE) official list, provided to KASE the following press release, reported the press-centre of KASE:

Eurasian Natural Resources Corporation PLC ('ENRC' or the 'Group') announces that it has entered into a conditional agreement ('the Transaction') to acquire 100% of Enya Holdings BV ('Enya') which holds a 90% interest in Chambishi Metals PLC ('Chambishi'), a Zambian copper and cobalt producer, together with a 100% interest in Comit Resources FZE ('Comit'), a Dubai-based marketing and sales company that historically has handled Chambishi's copper and cobalt sales. The aggregate consideration for the Transaction amounts to US300 million, which will be wholly funded from ENRC's existing cash resources. The Transaction remains subject to the satisfaction or waiver of certain conditions precedent and is expected to be completed no later than the end of June 2010.

The acquisition constitutes a 'smaller related party transaction' for the purposes of the Listing Rules of the United Kingdom Listing Authority ('UKLA').   

Chambishi is a mineral processing facility which produces copper and cobalt. It is the intention of the management of ENRC to combine Chambishi with the Group's existing operations in the Democratic Republic of the Congo ('DRC'). ENRC currently plans to invest approximately US80 million into Chambishi by the end of 2011, in new and upgraded production facilities. The investment should increase Chambishi's copper production capacity to 55 kt per annum of London Metal Exchange ('LME') Grade A copper cathode.

The integrated copper and cobalt mining and smelting businesses of Chambishi and those in the DRC, when combined, should have an improved cost position over time. The acquisition also enables ENRC to fast-track its copper and cobalt expansion and to achieve a higher planned level of combined total capacity, of 130 kt per annum of LME Grade A copper cathode and 12 kt per annum of cobalt contained metal salts and concentrates by 2012.

Chambishi's current facilities comprise a roast leach electro-winning plant – for the processing of oxide concentrate, sulphide concentrate or intermediate metal salts - and an electric arc furnace and a pressure oxidation leach plant for furnace slag treatment. Chambishi also owns a slag dump of approximately 16.6 million tonnes, with an average grade of 1.10% copper and 0.71% cobalt.

Current copper production capacity at Chambishi is 25 kt per annum of blister grade copper. Chambishi is also a substantial producer of cobalt, one of the largest in the world, with a current capacity to produce 6 kt per annum of refined cobalt metal. The cobalt metal produced at Chambishi is high-grade and has strong brand recognition in the industry.                                 

Comit acts as a marketing and sales company for all of the copper and cobalt production of Chambishi.

The independent Board and the management of ENRC believe that the Transaction, agreed on an arm's length basis, has a compelling strategic rationale and will create value for all shareholders.