February 6, 2009 / 4:03 PM / 9 years ago

UPDATE 1-TEAL's net loss for quarter to end-Dec at $37.2 mln

* Takeover by ARM still subject to regulatory approvals

* Sales at $1.6 mln, down from $3.9 mln the previous quarter

* Secured financial support from ARM until end-September

(Adds detail)

JOHANNESBURG, Feb 6 (Reuters) - South African-based Teal Exploration and Mining TELJ.J swung into a net loss of $37.2 million for the quarter to end-December, hit by a lower mining rate and the suspension of some of its copper deliveries.

Sales for the period amounted to $1.6 million, down from $3.9 million the previous quarter.

TEAL said on Friday it has fully utilised the $85 million loan facility, repayable at the end of August and guaranteed by diversified mining group African Rainbow Mineral (ARM) (ARIJ.J).

The two companies said in December that they had agreed for ARM to buy all the outstanding shares it did not own of Teal to later form a 50-50 joint venture with Brazil’s Vale (VALE5.SA) for the future development and operations of TEAL’s assets.

The deal is subject to regulatory and shareholder approval.

TEAL, which at end-December had cash of $800,000, said it had received a letter of financial support from ARM, which provides the company with financial assistance amounting to 385 million rand ($38.75 million) up to the end of September.

Reporting by Agnieszka Flak

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