ICMI Intl. Cons. Min

 

TIDMICMI 
 
RNS Number : 1218Z 
International Consolidated Min. Inc 
15 September 2009 
 

16 September 2009 
 
 
INTERNATIONAL CONSOLIDATED MINERALS INC. 
("ICMI" or the "Company") 
Disposal of International Consolidated Minerals Limited 
International Consolidated Minerals Inc. (AIM & BVL: ICMI), further to the 
announcement made on 17 August 2009, was informed by Begbies Traynor Group plc 
("Begbies"), on 10 September 2009, acting as administrators to the Company's 
principal subsidiary International Consolidated Minerals Limited ("ICML"), that 
they have completed the sale of the assets of ICML which were encumbered by 
liabilities of approximately US$35 million. The disposal to Ancash Mining Ltd 
("Ancash"), a newly-formed company controlled by Platinum Partners Value 
Arbitrage Fund, L.P. ("Platinum"), was for consideration of an undisclosed cash 
sum plus a release for ICML from certain guarantees related to ICMI's secured 
obligations. Platinum is an existing significant shareholder in the Company and 
its largest senior secured creditor, owed approximately US$25 million. Mr Daniel 
Small, a Non-executive Director of the Company, is a Managing Director of 
Platinum Management (NY) LLC, the investment manager to Platinum. The Millennium 
Global Special Situations Americas Fund Limited ("MGSSAF"), an existing 
significant shareholder in the Company and a senior secured creditor owed 
approximately US$3 million is a minority shareholder in Ancash. Mr Jesse 
Rodriguez, a Non-executive Director of, and former Chief Executive Officer of 
the Company, is a member of the investment committee of MGSSAF. Mr Rodriguez 
resigned as Chief Executive Officer remaining a Non-executive Director on 9 
September 2009. 
In connection with the purchase of the assets of ICML and the release of ICML as 
a guarantor to certain of ICMI's obligations, it is expected that ICMI will also 
be released by the senior secured creditors from its obligations. In addition, 
Ancash is currently in discussions with certain other unsecured creditors of 
ICMI. However, Begbies has informed ICMI that the proceeds obtained from the 
sale of ICML's assets will not be sufficient to settle the amounts due to its 
creditors, and the Company does not therefore expect to receive any proceeds 
arising out of the administration of its principal subsidiary. As a result of 
the disposal, ICMI no longer has any trading activities and following the 
anticipated release of the senior secured debt, it is currently estimated that 
the Company will have un-audited net liabilities of approximately US$14 million. 
In light of the Company's uncertain financial position, lack of trading 
activities and absence of any suitable funding, the Board will now seek 
appropriate advice from an insolvency practitioner, including the possibility of 
shortly initiating proceedings to place the Company into a Cayman Islands' 
administration process. Regrettably, the Board does not anticipate that the 
Company's shareholders will receive any proceeds in relation to their ordinary 
shares from such an administration process. Accordingly, trading in the 
Company's shares on AIM and Lima will remain suspended until further notice. 
 
 
Strand Partners Limited has tendered its resignation as the Company's Nominated 
Adviser with immediate effect. In the event that an alternative Nominated 
Adviser is not appointed within one month, then, in accordance with Rule 1 of 
the AIM Rules for Companies, the admission of the Company's ordinary shares to 
trading on AIM will be cancelled. 
For further information on the administration of International Consolidated 
Minerals Limited, please contact: 
Kirstie Provan 
Director 
Begbies Traynor 
32 Cornhill 
London 
EC3V 3BT 
Tel: (020) 7398 3789 
Fax: (020) 7398 3799 
Enquiries: 
+---------------------------+------------------------+----------------------+ 
| International Consolidated Minerals Inc.                                  | 
+---------------------------------------------------------------------------+ 
| Pawan Sharma              |                        | Tel: +44 (0)20 7766  | 
|                           |                        | 0085                 | 
+---------------------------+------------------------+----------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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