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WGR
WGR
WGR - Wits Gold - Successfully completes capital raising by issuing of shares
for cash
Witwatersrand Consolidated Gold Resources Limited
(Incorporated in the Republic of South Africa)
Registration Number 2002/031365/06
JSE Code: WGR
ISIN: ZAE000079703
("Wits Gold" or "the Company")
WITS GOLD SUCCESSFULLY COMPLETES CAPITAL RAISING BY ISSUING OF SHARES FOR CASH
1. Introduction
At the annual general meeting of the Company held on 5 October 2006, the
requisite majority of Wits Gold shareholders approved an ordinary resolution
authorising the directors to issue shares for cash in accordance with paragraph
5.52 of the JSE Limited ("the JSE") Listings Requirements ("the general
authority").
2. Private placing
In accordance, Wits Gold is pleased to announce the successful completion of a
capital raising by way of a private placement, by J.P. Morgan Securities Ltd.,
as sole global coordinator and sole bookrunner, of newly issued ordinary shares
in the Company. This has resulted in the raising of R83 593 160 (equivalent to
approximately US$12 million) by placing 879 928 ordinary shares at a price of
9500 cents per share. The new shares represent approximately 3.44% of Wits
Gold`s issued ordinary share capital prior to the capital raising. This together
with a general issue of shares for cash announced on 20 October 2006 (being
2,23% of the issued share capital) represents 5,74% of the issued share capital
since the granting of the general authority.
The placing price of 9500 cents represents a 9,35% discount to Wits Gold`s 30-
day volume weighted average price on 2 July 2007, being the date that the price
of the issue was agreed by the directors. As described in the Company`s
announcement on 8 May 2007 of its preliminary results for its financial year
ended 28 February 2007, the proceeds are intended to be used to fund the
Company`s planned exploration activities, as well as to cover its estimated
operating expenses for the next two years. Commenting on the proposed
transaction, Marc Watchorn, Chief Executive Officer of Wits Gold, said: "We are
delighted with the positive response to our capital raising. We are pleased
with the quality of our enlarged shareholder base and welcome our new
shareholders".
The placed shares are expected to be listed on the JSE on or about 5 July 2007,
subject to JSE approval, and will rank pari passu with the existing ordinary
shares of the Company.
3. Financial effects
The table below reflects, for illustrative purposes only, the unaudited pro
forma financial effects of the above mentioned general issue of shares for cash
on the audited financial statements of Wits Gold for the year ended 28 February
2007. Because of its nature, the pro forma financial information may not fairly
present Wits Gold`s financial position or results of operations.
The pro forma financial information is the responsibility of the directors of
Wits Gold.
The "Before the issue of shares" column of the table, is based upon the reviewed
financial statements of Wits Gold for the year ended 28 February 2007.The "After
the issue of shares" earnings figures illustrate the effect of the general issue
for cash had it been undertaken on 1 March 2006. The "After the issue of
shares" asset value figures illustrate the effect of the general issue for cash
had it been undertaken on 28 February 2007.
The "After the issue of shares" figures were adjusted as follows:
* the closing and weighted average number of shares in issue were increased by
879 928 shares;* in the case of the earnings figures, no adjustment was made for
interest earned since Wits Gold will be utilising the cash proceeds mostly in
its exploration activities; and* in the case of the asset value figures, the
group`s cash holdings were increased by the R83 593 160 in proceeds from this
general issue of shares. The share capital and share premium accounts were
adjusted to reflect the issue of the placed shares, with a par value of 1 cent
per share, at 9500 cents per share.
Before the After the %
issue of issue of change
shares (cents shares (cents
per share per share)
Basic and headline loss (10,98) (10,61) 3,37
Net asset value 328,48 633,12 92.74
Johannesburg
3 July 2007
Sponsor:
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 03/07/2007 16:00:01 Produced by the JSE SENS Department.
