Pala Investments Completes Sale of Its Interest in Sierra Rutile Limited

PR66829

ZUG, Switzerland, Dec. 8 /PRNewswire=KYODO JBN/ --

      Pala Investments ("Pala"), an investment company focused on the mining and

metals value chain, announces today the successful completion of the sale of

its 53 percent interest in Sierra Rutile Limited ("Sierra Rutile"), the world's

largest producer of natural rutile, to Iluka Resources. The transaction valued

Sierra Rutile at GBP215 million.

    Since Pala first invested in Sierra Rutile in September 2010, Pala, in

collaboration with Sierra Rutile's employees, shareholders and other

stakeholders, has been successful in implementing the following:

    - Strategic business plans: Formulation and execution of a strategic

business plan which repositioned Sierra Rutile operations from a

capital-intensive dredging operation, to a more flexible dry mining business

focused on cash generation across the commodity cycle.

    - Investments and expansion projects:  Focused investment in process

optimisation and operational efficiency. Successful construction and

commissioning of expansion projects, being the Lanti Dry Mine in 2013 and the

Gangama Dry Mine in 2016.

    - Production growth: Since 2010, Sierra Rutile's rutile production has

increased from 68,000 tonnes per annum to a record run-rate production of

172,000 tonnes per annum in Q3 2016, with projects defined to further expand

production to over 225,000 tonnes per annum.

    - Stakeholder relations: Re-establishment of a positive and cooperative

relationship with the Government of Sierra Leone, including the full repayment

of the Government of Sierra Leone loan. Enhanced the focus on community,

including the implementation of environmental, infrastructure, educational and

healthcare projects.

    Commenting on the successful divestment of Pala's interest in Sierra

Rutile, Stephen Gill, Pala Portfolio Manager, said:

    "For Pala, this transaction represents the realisation of a successful

investment in a niche minerals sector, and helps to ensure the ongoing growth

of Sierra Rutile for the benefit of its stakeholders. We are proud of our

contributions in the successful turnaround of Sierra Rutile's operations and

its transformation into the world's largest producer of natural rutile.

    I would like to especially thank John Sisay for his stewardship of the

company as CEO and the efforts and dedication of the management team and

employees in reinstating Sierra Rutile as the premier mining company in Sierra

Leone. We are also appreciative of the long-standing support from Nedbank and

Sierra Rutile's major shareholders, M&G Investments,  JPMorgan Asset Management

and Neon Liberty, who have followed us on this journey to help realise the

potential of Sierra Rutile's world-class mineral sands asset."

    About Pala

    Pala is an investment company focused exclusively on the mining sector with

a strong track record of successful investments and value creation. Pala's team

has extensive experience within the sector and seeks to assist companies in

which it has long-term shareholdings by providing strategic advice and

innovative solutions in development, production, turnaround and advanced

exploration situations. Pala invests across all geographies and in all mining

commodities as well as mining services and consumables. For more information,

visit http://www.pala.com.

    Contact: Richard Brown, Tel: +41-41-560-9070

Source: Pala Investments