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China Firm to Buy Half of Weatherly for $26.8 mln

[Cu] Summary - 2009/9/17 Spot Copper Market

LONDON, Sept. 17 -- African copper (LSE: ACU.L - news) miner Weatherly International Plc agreed a deal worth 16.1 million pounds ($26.81 million) with a Chinese firm that will take a controlling 50.1 percent stake and will allow the firm to reopen shut mines, the firm said on Tuesday.
&nbsp;&nbsp;&nbsp; London-listed Weatherly said in a statement it had signed a letter of intent to issue 446.8 million new shares at 3.6 pence each to a wholly-owned subsidiary of East China Mineral Exploration and Development Bureau (ECE).
&nbsp;&nbsp;&nbsp; Weatherly shares closed at 3.425 pence on Monday.
&nbsp;&nbsp;&nbsp; Weatherly shut down all four of its copper mines in Namibia in December 2008 due to low prices and has been considering strategic options. It also owns a smelter in Namibia.
&nbsp;&nbsp;&nbsp; 'ECE has recognised the value inherent in Weatherly's asset base and management team and are prepared to invest heavily to obtain a controlling position in the company,' Chief Executive Rod Webster said.
&nbsp;&nbsp;&nbsp; The deal will allow Weatherly to reopen its Otjihase and Matchless mines to take advantage of increased copper prices, he added.
&nbsp;&nbsp;&nbsp; It will also provide funds for the development of the Tschudi open pit copper project.
&nbsp;&nbsp;&nbsp; The deal is due to be completed before the end of January 2010.
&nbsp;&nbsp;&nbsp; (Source: Reuters) 
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