Weatherly nets big through sale of Forsys shares

THE AIM-quoted integrated mining group Weatherly International has realised £5 million (N$72 million) in cash by selling its holding in the Toronto-listed mining group Forsys Metals Corp.

It follows the sale to Forsys in January of two non-core mining assets in Namibia in return for two million Forsys shares and US$1 million (N$7,4 million) in cash. The Chief Executive Officer, Rod Webster, said: “Weatherly saw an opportunity to realise its investment.The proceeds are earmarked to underpin continued mine development at the Tschudi and Tsumeb West mines and to further evaluate the Multi Pit Project at Kombat.We continue to have a strong relationship with Forsys through our collaboration on the Elbe copper prospecting licence in Namibia.”On January 16, Weatherly also finalised the sale, for cash and shares, of certain non-core exploration assets in Namibia from which the company hopes to realise approximately US$10 million in cash.Earlier this month, Weatherly announced an interim profit for the Group for the results for the six-month period to December 31 2006.The interim profit was US$2,3 million and this profit was achieved as a result of a rapid turnaround of Ongopolo Mining and Processing Limited, acquired by the company in 2005.In his report, Weatherly Chairman, Wolf Martinick, said this came about through “the focus and commitment of management and operational teams and the restoration of production from the Tsumeb smelter and the Otjihase copper mine”.The company said the increase in revenue from the Tsumeb smelter since its August refurbishment was due to improved supply from Otjihase mine and favourable copper prices.”At Otjihase, mining output has been restored to profitable levels while preparations are being made for larger scale pillar extraction; limited production is now taking place at Kombat while evaluation of future production potential takes place,” he said adding that other profitable projects were also under review.The Chief Executive Officer, Rod Webster, said: “Weatherly saw an opportunity to realise its investment.The proceeds are earmarked to underpin continued mine development at the Tschudi and Tsumeb West mines and to further evaluate the Multi Pit Project at Kombat.We continue to have a strong relationship with Forsys through our collaboration on the Elbe copper prospecting licence in Namibia.”On January 16, Weatherly also finalised the sale, for cash and shares, of certain non-core exploration assets in Namibia from which the company hopes to realise approximately US$10 million in cash.Earlier this month, Weatherly announced an interim profit for the Group for the results for the six-month period to December 31 2006.The interim profit was US$2,3 million and this profit was achieved as a result of a rapid turnaround of Ongopolo Mining and Processing Limited, acquired by the company in 2005.In his report, Weatherly Chairman, Wolf Martinick, said this came about through “the focus and commitment of management and operational teams and the restoration of production from the Tsumeb smelter and the Otjihase copper mine”.The company said the increase in revenue from the Tsumeb smelter since its August refurbishment was due to improved supply from Otjihase mine and favourable copper prices.”At Otjihase, mining output has been restored to profitable levels while preparations are being made for larger scale pillar extraction; limited production is now taking place at Kombat while evaluation of future production potential takes place,” he said adding that other profitable projects were also under review.