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METALL MINING CORPORATION TO PURCHASE SHARES OF M.I.M. HOLDINGS

 METALL MINING CORPORATION TO PURCHASE SHARES OF M.I.M. HOLDINGS
 TORONTO, April 3 /PRNewswire/ -- Metall Mining Corporation ("Metall") announced today that it has agreed to purchase from Metallgesellschaft AG ("MG"), its principal shareholder, 75,614,000 ordinary shares of M.I.M. Holdings Limited in exchange for the issue by Metall to MG of 13,138,689 common shares of Metall. The exchange of shares is based upon a price of $12.50 per share for MMC common shares and Aust.$2.40 per share for MIM ordinary shares. The total purchase price of the MIM shares to be acquired is Cdn.$164.2 million. The closing price of MIM ordinary shares on the Australian Stock Exchange on April 1, 1992 was Aust.$2.59.
 The transaction has been reviewed and recommended by a committee of the independent directors of Metall, based on financial advice from independent advisors. Completion of the transaction is subject to regulatory approvals, to approval by a majority of the minority shareholders of MMC and by the supervisory board of MG.
 MIM is a major Australian diversified mineral/metal producing organization with its head office in Brisbane, Australia. Completion of the transaction will increase Metall's strategic ownership interest in MIM to 193,341,532 ordinary shares (13.9 percent), making Metall the second largest shareholder of MIM and the largest shareholder of MIM with board representation. Completion of the transaction will result in MG's interest in Metall increasing from 59.3 percent to 68.6 percent, and from 50.7 percent to 60.0 percent on fully diluted basis.
 According to Dr. Klaus Zeitler, president and CEO of Metall, the transaction has a number of important advantages for Metall. Metall's asset base will increase by approximately 20 percent to Cdn.$1 billion while Metall's shareholders' equity will increase by approximately 30 percent to over $700 million. Completion of the transaction will secure Metall's right to representation on MIM's board in accordance with an agreement between MIM and Metall. Metall expects that the transaction will provide further opportunities to form joint ventures with MIM in connection with international base metals projects. As a result of Metall's increased ownership interest in MIM, dividends received by Metall from MIM will not be subject to Canadian income tax.
 Metall is a Canadian-based international mining company, with significant operations and interests in copper, zinc, lead, gold and silver properties internationally. In addition to its strategic interest in MIM, Metall has a major strategic investment in Teck Corporation, which owns a number of mines in Canada producing gold, copper and other minerals, and together with MIM controls Cominco Ltd.
 -0- 4/03/92
 /CONTACT: H. Douglas Scharf, vice-president/finance and CFO of Metall Mining Corporation, 416-361-6400/
 (MLM.) CO: Metall Mining Corporation; M.I.M. Holdings Limited ST: Ontario IN: MNG SU: TNM


AH -- NY075 -- 5055 04/03/92 17:38 EST
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Publication:PR Newswire
Date:Apr 3, 1992
Words:480
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