Pala Investments Completes Sale of Its Interest in Sierra Rutile Limited

Zug, Switzerland (ots/PRNewswire) -

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
£215 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: [phone]

ots Originaltext: Pala Investments
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