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An quarterly update for its activities at Sintoukola Potash Project has been provided by Elemental Minerals Ltd (ASX, TSX: ELM) (Elemental).

Sintoukola Potash Projectis located in the Republic of Congo (RoC).

Highlights:

  • Dingyi Group Investment Limited (Dingyi) to make an all cash off-market takeover offer for 100% of the fully paid ordinary shares of Elemental at A$0.66 per share.
  • Dingyi to subscribe for A$5 million of Elemental shares and provide Elemental with additional financing of up to A$15 million through a secured convertible loan facility (subject to shareholder approval).
Operational Activities:

  • Receipt of a large database of historic mining and exploration data for the RoC
  • Land rezoning and compensation process underway
  • Continued modularisation studies with AMEC in preparation of the start of the Bankable Feasibility Study
  • Completed brine dispersion modeling which confirmed the feasibility of the proposed solution from an environmental impact perspective
  • A 12-month metocean survey was completed
  • A geotechnical report on the process plant foundation design was completed by AMEC.
Post-quarter Operational Activities:

  • Continued land rezoning and compensation process
  • Engagement with regulators in support of the Congolese Environmental and Social Impact Assessment (ESIA)
  • Preparation of submission of the International Environmental and Social Impact Assessment (ESIA)
Dingyi Offer 

On 1 July 2013, Elemental announced that it had executed a bid implementation agreement with Dingyi (Bid Implementation Agreement) under which Dingyi will make an off-market takeover offer for 100% of the fully paid ordinary shares of Elemental (Dingyi Offer). The Dingyi Offer price is A$0.66 per Elemental share, valuing Elemental at approximately A$190 million and represents a 126% premium to the volume weighted average price per Elemental share over the 20 trading days prior to the announcement in relation to the Dingyi Offer made on 12 April 2013. A majority of Elemental directors have recommended that shareholders accept the Dingyi Offer unless a superior proposal emerges or the Dingyi shareholder approval condition has not been satisfied by the prescribed date.

 

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