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African Resources agrees to buy up to 60% in Hambledon Mining.


2 November 2012 a[euro]" Cayman Islands-incorporated African Resources Ltd, controlled by members of the Assaubayev family, has agreed to make a recommended cash bid to acquire a stake of up to 60% in UK-based Hambledon Mining Plc (LON:HMB), the parties announced today.

Last month, an African Resources-related firm completed the purchase of some 88.45m Hambledon shares from non-executive director Nicholas Bridgen. As a result, the bidder already owns a 9.02% shareholding in the target and will seek to buy an additional interest of not less than 50.1% to reach its targeted shareholding.

Under the terms of the agreement, the stockholders of Hambledon will receive GBP0.02 (USD0.03/EUR0.02) per share. The offer, which represents a 66% premium to yesterdaya[euro](tm)s closing, values the entire company at about GBP19.6m. To successfully close the transaction, African Resources would need to secure the support of independent Hambledon stockholder exceeding 50% of the total valid votes cast.

Hambledon is engaged in the development of gold mining interests in Kazakhstan. The company has the exclusive right to explore and extract gold and silver ore from the Sekisovskoye deposit in the countrya[euro](tm)s Glubokovsky region. In September 2011, Hambledon said it had agreed to take over sector player Akmola Gold LLP in a bid to gain access to the Tellur and Stepok gold projects in central Kazakhstan.

African Resources noted it considers the Sekisovskoye mines and Akmola assets to be attractive growth and value opportunities. It intends to use its local knowledge and access to back the companya[euro](tm)s further growth.Country: UKSector: Metals/MiningTarget: Hambledon Mining PlcBuyer: The Assaubayev family, African Resources LimitedType: Corporate acquisitionStatus: Agreed, BiddingComment: The offer values Hambledon at USD31.5m.

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Publication:M & A Navigator
Date:Nov 2, 2012
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