EXTERNALIZATION

EXTERNALIZATION

 The most recent example is the SA Competitions Tribunal approval for Xstrata & Norlisk acquisition bid ($7B) for LionOre. Although Xstrata friendly bid was ‘trumped’ research indicates that Norlisk origins in Siberia from the 1930s coincide with Glazer acquisition in the 1970s of the Siberian Syndicate(Inc. UK 1913),an investment holding company with interests in Siberia and other mining investments in Russia, and a 10.7% holding in the ‘original’ Gold Fields. The name was changed to Crest International Securities in 1970 and had on its board numerous influential South Africans such as the Lubner brothers.

The externalization of African mineral interests included Falconbridge (Via Noranda) with Tati River Holdings in the Bahamas which M& A was recently completed by Xstrata.

 By reverse restructuring into Canada, the predecessor of LionOre (Liberian Iron Ore estab.1958) acquired 98.3% of Francistown Mining & Exploration (Jersey) (FME) for $26m in July 1996.A name change followed and FME acquired 41.65% of Tati Nickel, Lexan Trading 43.35% (De Beers Centenary) & Botswana Government 15%. On 8 May 2002, LionOre acquired Anglo 43.35% and by 29 November 2002 the completed acquisition included an equity interest in Bamangwato Concessions Ltd (BCL) for a cash consideration of $2 referred to above. The relevance remains farms Mineral Area 7

(Farms 73NQ & 75 NQ) which formed part of the 12 mineral areas ceded to Tati Territory Exploration Company prior to Glazers passing away. The name of this company was replaced and an agreed operator as described above and continued in exactly the same share proportion as before. Also, I refer you to a Deed of transfer (Title Deed 767/88)   11 November 1988 from BEC to Sam Estate Land Company for a nominal value of P312 000. 

The Botswana Ministry of Mines rely on Tati abandonment 21 June 74 for public consumption, but a cession to Tati Territory Exploration and subsequent abandonment 4 days later did not revert back to the Botswana Government. Instead a tax concession followed for the life of the mine with the Government having a 15% share. In fact, this principal appears to apply to most arrangements irrespective of the M& A that have transpired.

The 1987 Edition of the Laws of Botswana has been replaced by the 2002 Revised Edition and refer you to the Tati Concessions Land Act (Cap32:05). Apart from the Title Deed confirmation of Mineral Right retention submitted, the BSA Charter and Statutes was specific to Tati Concessions and from my understanding still rules.