| Mon 17 Sep 2007, 9:00 | | WEZ - Wesizwe Platinum Limited - General issue of |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - General issue of shares for cash
Wesizwe Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/020161/06)
JSE code: WEZ & ISIN: ZAE000075859
(the "Company" or "Wesizwe")
GENERAL ISSUE OF SHARES FOR CASH
WESIZWE RAISES R300 MILLION FOR EARLY WORKS PROGRAMME ON CORE PROJECT
Introduction
At the annual general meeting of the Company held on 16th August 2007, the
requisite majority of Wesizwe shareholders approved an ordinary resolution
authorising the directors of Wesizwe to issue shares for cash in accordance with
paragraph 5.52 of the Listings Requirements of the JSE Limited ("JSE") ("general
authority"). In accordance with this general authority the Company has
successfully placed 40,000,000 ordinary shares ("the placed shares"), equating
to 7.77 per cent of the Company`s issued share capital, thereby raising
R300,000,000. 20,000,000 of the placed shares were listed on the JSE with effect
from Friday, 14 September 2007. The balance 20,000,000 of the placed shares will
be listed on the JSE with effect from the commencement of business on Tuesday,
18 September 2007. The placed shares rank pari passu with the existing ordinary
shares of the Company.
In terms of the private placing, Wesizwe placed 40,000,000 ordinary shares at an
issue price of R7.50 per ordinary share, which represents a 9.50% discount to
the 30 day volume weighted average price of R8.28 per ordinary share as at 29th
August 2007.
The shares were placed with institutional shareholders, who qualify as "public"
shareholders within the meaning of paragraphs 4.25 and 4.26 of the Listings
Requirements of the JSE. Post the listing of the placed shares Wesizwe will be
50.77% owned by Historically Disadvantaged South Africans.
Application of proceeds
The proceeds will be used to fund the early works programme at Wesizwe`s core
Frischgewaagd-Ledig project. This includes site civil preparations, securing
power and water, engaging engineering teams and placing deposits for long lead
capital items. Following the acquisition of Africa Wide Exploration and
Prospecting (Proprietary) Limited ("Africa Wide"), the proceeds will also be
used for funding Wesizwe`s portion of its exploration contributions towards the
Western Bushveld Joint Venture.
Financial effects
The table below reflects the unaudited pro forma financial effects of the above
mentioned general issue of shares for cash. The pro forma financial effects have
been prepared for illustrative purposes only and in terms of the Listings
Requirements of the JSE and therefore due to their nature, may not truly reflect
Wesizwe`s financial position or results. The directors of Wesizwe are
responsible for the preparation of the pro forma financial effects.
Before the Pro forma Change (%)
issue after the
issue
Basic loss - cents per share 14.25 13.05 8.42
Headline loss - cents per share 14.25 13.05 8.42
Net asset value ("NAV") - cents 72.30 126.80 75.38
per share
Net tangible asset value ("NTAV") 40.01 70.16 75.36
- cents per share
Number of shares in issue 457,407,524 497,407,524 8.74
Notes:
i The "Before the issue" figures are based on Wesizwe published reviewed and
condensed interim results for the six months ended 30 June 2007.
ii The "Pro forma after the issue" column is based on the assumption that the
issue was effective on 1 January 2007 for basic loss per share and headline
loss per share. It is assumed that the proceeds will be utilised for
capital expenditure and working capital and will therefore not affect
earnings for the period. Losses per share, however, will be diluted by the
new number of shares in issue.
Iii The "Pro forma after the issue" column is based on the assumption that the
issue was effective on 30 June 2007 for NAV and NTAV purposes. The number
of shares in issue does not include the 57,412,643 new Wesizwe shares
issued in terms of the acquisition of Africa Wide.
Illovo, Johannesburg
17 September 2007
Corporate advisor Sponsor
Qinisele Resources (Pty) Limited Investec Bank Limited
Enquiries
College Hill +27 11 447 3030
Nick Williams
Fred Cornet
Wesizwe Platinum +27 11 215 2375
Charles Sambo
www.wesizwe.com
Date: 17/09/2007 09:00:04 Produced by the JSE SENS Department.
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