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Tata Chemicals to buy 30.6% in EPM Mining

25 Aug 2011

Tata Chemicals has signed an agreement to acquire 30.6% stake in Canadian potash miner EPM Mining Ventures. In May this year, Tata Chemicals had announced the deal to acquire stake in EPM Mining Ventures. Tata Chemicals Ltd’s Gusiute Holdings (UK) has entered into a subscription agreement with EPM Mining Ventures. According to the agreement, EPM will issue Gusiute 1 unit at a price of 16 million Canadian dollars. The unit consists of 8 million common shares and 8 million warrants. Gusiute had also entered into an agreement with the founding shareholders of EPM -- Lance D'Ambrosio and Jeff Gentry -- to acquire a total of 43,78,000 common shares at 2 Canadian dollars per share.

After completion of these transactions and conversion of warrants, there would be 12,12,25,889 outstanding common shares, of which Gusiute would own directly or through its arm Valley Holdings 3,70,55,612 common shares representing 30.6% of the outstanding common shares. EPM intends to use the proceeds of the offering for the further evaluation of its properties and for general working capital purposes. EPM holds the lease of 95,172 acres, which was granted during the organised leasing process by the US government's potash lease auction. It has 40% stake in Emerald Peak Minerals, which controls 6,409 acres of land leased from the State of Utah and is contiguous to its land.

Tata Chemicals is a market leader in branded Iodised salt segment in the country. It is the world's second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. The company is also a leading manufacturer of urea and phosphatic fertilisers and, through its subsidiary, Rallis, has a strong position in the crop protection business.crackcrack

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