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FOR
IMMEDIATE RELEASE
STRATEGIC MINERALS SELLS 15% INTEREST IN VAMETCO TO BLACK ECONOMIC EMPOWERMENT CONSORTIUM
DANBURY, Connecticut, January 31, 2007 —
Strategic Minerals Corporation of Danbury, Connecticut announced
that it sold a 15% equity interest in its Vametco Minerals Corporation
subsidiary to a Black Economic Empowerment (BEE) consortium in
South Africa.
The Black Economic Empowerment consortium consists of Aka
Resources Holdings (Pty.) Ltd. and the Krokodilkraal and Uitvalgrond
communities near Vametco’s operations in Brits, South Africa. Aka
Resources is a privately-held black-empowerment company and will be
the lead partner in the consortium. Vametco’s operations are located on
land l eased from Krokodilkraal and Uitvalgrond communities.
Aka Resources will use its own capital to acquire its 75% share of
the 15% interest in Vametco. Strategic Minerals Corporation, part of the
Evraz Group of Russia, will fund the balance of the purchase.
Vametco Minerals operates a vanadium mine and mill in Brits —
about 30 miles west of Pretoria. Its principal product is Nitrovan®
vanadium, a proprietary vanadium-nitrogen product that efficiently
strengthens steel. This value-added product is exported to steelmakers
world wide.
The agreement with the BEE consortium allows Vametco to fulfill
the initial requirements of the Broad-based Socio-economic
Empowerment Charter for the South African Mining Industry published in
Octob er 2002.
"This transaction provides a balance between a commerciallynegotiated
agreement and certain unique aspects required to sustain the
objectives of a Black Economic Empowerment transaction," said Hein
Enslin, President of Strategic Minerals Corporation. "Favorable
repayment terms and a dividend policy designed that will accelerate
economic benefits to the new BEE consortium are key features of the
transa ction."
Mr. Enslin also noted that the capital received from the BEE
consortium will help Vametco achieve its contemplated and expansion
and modernization plans. Included is an expansion of the existing
beneficiation plant and other improvements that will create additional
employment in the Brits area and increase exports from South Africa, he
said.
Reuel Khoza, Chairman of Aka Resources, indicated that he
believes the transaction will have real, long-term, sustainable benefits to
all the empowerment partners involved. "At Aka Resources, we believe
that the structure of the transaction allows us to participate fully in the
future profitability of the vanadium industry. This creates clear incentives
to contribute actively and fully in the growth of Vametco. Furthermore,
the transaction allows the local communities to benefit directly as true
stakeholders in the success of Vametco."
January 31, 2007
For more information, contact
John Crane
telephone: (212)302-3344
email: John.Crane@stratcor.com
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