Companies: EMED   

EMED Mining is lifting its stake in Spain’s Rio Tinto copper mine to 100 per cent in a deal with MRI Group.

Based in Cyprus and quoted on AIM, EMED is increasing its holding in the 135-year-old mine, which it plans to reopen next year, from 51per cent to full ownership by issuing £8.2-million worth of shares at 21p and paying a target-related £35 million over two years to MRI, founded by controversial commodities trader Marc Rich. This will give MRI 16 per cent EMED, headed by Harry Anagnostaras-Adams, which is also acquiring £7.3 million of debt.

MRI’s chief executive officer, Ashwath Mehta, is to become a non-executive director of EMED and MRI will act as marketing agent for copper-concentrate produced from the Rio Tinto mine, which was recently estimated to hold 600,000 tonnes of copper. EMED reckons it will cost £60 million to restart the mine, assuming the project is approved by its own shareholders and the Spanish authorities.

Floated at 8p three years ago, EMED shares reached 30.5p last May. Now, 21p, they have speculative possibilities, overall stock market conditions permitting.

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EMED Mining Public Ld	AIM	£19.44m	8.12p	-0.38p
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Other company articles:
EMED in £50m Spanish deal			02/10/2008
New funding for EMED			14/09/2007
Slovak cheer for EMED			21/08/2007
EMED funds expansion			11/05/2007
More losses for EMED			19/02/2007