CRM subscribes to Convertible Bond

African Minerals Ltd (the “Company” or “AML”) confirms that, following receipt of relevant regulatory approvals, China Railway Materials Company Limited  (“CRM”) has completed its subscription for $50m of the Company’s 8.5% convertible bonds due 2017 (“the Bonds”) through CRM (Hong Kong) Holdings Ltd, its wholly owned subsidiary. These Bonds have been issued today, and are on the same terms as, and form a single series with, the $350m of convertible bonds issued on 10 February 2012.
 
As previously announced, CRM has the right to maintain its shareholding in the Company at up to 12.5% in the event of any future equity issue by AML. CRM’s subscription to the Bonds, which represents 12.5% of the enlarged issue of the Bonds, removes any potential dilution of their shareholding if the Bonds convert into fully paid common shares of the Company.

The common shares to be issued upon conversion of the Bonds issued to CRM would represent approximately 4.6 million common shares or 1.4% of the current total number of issued and outstanding common shares of the Company. 

Mr. Liu Guoping, CRM’s nominated director on AML’s Board, said

“We are delighted by African Minerals’ achievements in bringing Tonkolili into production in such a short period of time and are committed to working with them as supportive, long-term partners.”

Frank Timis, Executive Chairman of AML commented:

“The subscription by CRM for their full entitlement of AML’s convertible bonds underlines their commitment to AML’s growth story and also signals the support of China for our long term strategy.” 

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