July 25, 2008

Second tender for RTB Bor unsuccessful – Report

The Serbian Privatization Agency stated that the second tender for the sale of the assets of the mining and metallurgical complex RTB Bor Group was unsuccessful, because the second ranked bidder at the tender did not present evidence of having extended the bid guarantee.

According to a statement issued by the Privatization Agency, the second ranked bidder at the tender was the company Strikeforce Mining and Resources Ltd and the bid guarantee expired on April 29 at 3 pm, Belgrade time. Bearing in mind that without a valid bid guarantee there are no legal grounds for continuing negotiations, the Privatization Agency declared the second tender unsuccessful.

On April 11, the Privatization Agency informed the top ranked bidder at the tender, the consortium consisting of A Tec Minerals & Metals Holding GmbH, A Tec Industries AG and Montanwerke Brixlegg AG from Austria that the sale contract with the consortium had been terminated due to the failure of the consortium to pay the purchase price. On the same day, the second ranked bidder at the tender, Strikeforce Mining and Resources Ltd, was invited to enter into negotiations in order to close the sale contract.

The condition for beginning any kind of negotiations and further activities in the tender procedure, of which the second ranked bidder was clearly informed, is a bid guarantee valid for 180 working days from the date of submitting the offer. The Privatization Agency and the Ministry of Economy and Regional Development will make a decision as soon as possible about further steps to be taken in the privatization of RTB Bor Group.