| Thu 26 Apr 2007, 7:00 | | CMO - Chrometco Limited - Chrometco completes succ |
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CMO
CMO
CMO - Chrometco Limited - Chrometco completes successful capital raising
CHROMETCO LIMITED
Previously "Sweet Equity Investments (Proprietary) Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2002/026265/06)
(JSE Code: CMO & ISIN: ZAE000070249)
("Chrometco" or "the Company")
CHROMETCO COMPLETES SUCCESSFUL CAPITAL RAISING
Touchstone Capital and River Group are authorised to announce that Chrometco has
placed 38 592 205 shares since 31 August 2006, under the general authority to
issue shares for cash, with various public investors, including Sanlam and Cadiz
African Harvest Asset Management, at 63 cents per share raising R24 313 089. The
Board is pleased to announce that the capital raising was positively received by
institutional investors and the funds raised were in excess of the company`s
expectations.
The employment of this new capital will be spread over the following projects:
- Rooderand Exploration - upgrade to measured resource;
- Acquisition of Copper/cobalt, nickel concessions in the DRC;
- Feasibility studies on two ore concessions in the DRC;
- DRC Gold trading and possible acquisition of gold concessions;
- Development and start-up of cassiterite (Tin) mining and concentrate
production;
Overheads and trade payables;
Exercise Share Buy-back obligation of 2 million shares at R1,00 per share from
the Korpo Trust Shareholders, the previous owners of the mineral rights on
portion 2 of the farm Rooderand 46JQ
Management would like to take this opportunity to update shareholders on the
progress of the company`s initiatives in the DRC, which are as follows:
The company`s strategy in the DRC is to position itself as a niche developer of
profitable "second tier" mining projects, (i.e. smaller in scale than the mega
projects) but richer in grade and lower in capex requirements
The company is in the process of completing its application to the Reserve Bank
to set up and fund its DRC operations and expects this application to be
completed within the next six to eight weeks after which the DRC operations will
commence.
The board has identified Likasi, approximately 120 km NorthWest of Lumbumbashi
and centrally located relative to most of the company`s projects, as a suitable
location for establishing the company`s DRC base of operations.
The table below sets out the pro forma financial effects of the issue of shares
for cash, based on Chrometco`s interim results for the period ended 31 August
2006. The financial effects are presented for illustrative purposes only and
because of their nature may not give a fair reflection of the Company`s results,
financial position and changes in equity after the transaction.
It has been assumed for purposes of the pro forma financial effects that the
above transactions took place with effect from 1 March 2006 for income statement
purposes and 31 August 2006 for balance sheet purposes. The directors of
Chrometco are responsible for the preparation of the financial effects, which
have not been reviewed by the auditors.
Before After %
Change
Loss per share (cents) (1,40) (1,11) 20,71
Headline Loss per share (cents) (1,40) (1,11) 20,71
Weighted number of shares in issue 145 072 000 183 664 205 26,60
Net asset value per share (cents) 1,32 13,49 921,66
Net tangible assets per share (cents)1,32 13,49 921,66
Number of shares in issue 152 000,000 190,592,205 23,88
1. The "Before" financial information has been extracted, without adjustment
from the published unaudited interim results of Chrometco for the six months
ended 30 August 2006.
2. The "After" column represents the effects of all the issue of shares for cash
to date since 31 August 2006 as well as the placement at 63cps of the 2 000
000 shares bought back as discussed above. Earnings and headline earnings per
share have not been adjusted for anything else, other than to indicate any
dilutionary effect of the new additional shares being issued.
3. The "After" column assumes that the issue of shares for cash took place at
the beginning of the six month period ended 31 August 2006, and ignores any
effects of the time value of money and interest.
4. The "% Change" column compares the "After" column to the "Before" column.
Pretoria
26 April 2007
Joint Corporate Advisors
Touchstone Capital
River Group
Designated Advisor
River Group
Date: 26/04/2007 07:00:04 Produced by the JSE SENS Department.
