International Ferro Metals Chromite Supply Agreement with Rustenburg Platinum Mines

 
TIDMIFL 
 
29 December 2015 
 
International Ferro Metals Limited 
 
                           ("IFL" or the "Company") 
 
     Chromite Supply Agreement with Rustenburg Platinum Mines Limited and 
                            publication of accounts 
 
The Company announces that its South African subsidiaries, International Ferro 
Metals (SA) (Pty) Limited ("IFMSA") (in business rescue) and International 
Ferro Metals SA Holdings (Pty) Ltd ("IFMSAH") have commenced proceedings 
against Rustenburg Platinum Mines Limited ("RPM") to protect their interests 
under a Chromite Supply Agreement under which RPM is obliged to supply UG2 
chrome ore to IFMSAH. RPM has purported to terminate the Agreement. IFMSA and 
IFMSAH have received counsel's advice that the purported termination is 
invalid, and have commenced court proceedings to seek orders to protect their 
position, including orders that the purported termination is ineffective and 
that RPM is obliged to continue to supply chrome ore under the Chromite Supply 
Agreement. The proceedings are expected to be heard in mid-January 2016. 
 
In the meantime, RPM has agreed to continue to supply about 57,000 tonnes of 
ore which IFMSAH has an accrued right to receive but which have not yet been 
delivered, at a rate of 5,000 tonnes per month. The reduced supply of UG2 
chrome ore from RPM in the interim period will considerably reduce the group's 
revenue and place significant strain on its liquidity. As a result, the Company 
is no longer in a position to publish its annual report and accounts for the 
year ended 30 June 2015 by the end of December, but expects to do so following 
the successful resolution to this dispute. 
 
Additionally, the Company has applied to the Australian Securities and 
Investments Commission ("ASIC") for a further deferral of its Annual General 
Meeting to 31 March 2016. 
 
Further announcements in relation to these proceedings will be released in due 
course. 
 
                                    - ENDS- 
 
For further information please visit www.ifml.com or contact: 
 
International Ferro Metals Limited       Tel: +27 14 574 6302 
 
Chris Jordaan, Chief Executive Officer 
 
Numis Securities Limited                 Tel: +44 (0) 20 7260 1000 
 
James Black / John Prior / Paul Gillam 
 
About International Ferro Metals: 
 
International Ferro Metals produces ferrochrome, the essential ingredient in 
stainless steel, from its integrated chromite mine and ferrochrome processing 
operations in South Africa.  International Ferro Metals is listed on the London 
Stock Exchange under the symbol IFL. 
 
Forward Looking Statements 
 
This announcement contains certain forward looking statements which by nature, 
contain risk and uncertainty because they relate to future events and depend on 
circumstances that occur in the future.  There are a number of factors that 
could cause actual results or developments to differ materially from those 
expressed or implied by these forward looking statements. 
 
 
 
END

(END) Dow Jones Newswires

December 29, 2015 02:00 ET (07:00 GMT)

International Ferro Metals (LSE:IFL)
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