|
PZG
PZG
PZG - Pamodzi Gold - Further Announcement In Respect Of The Acquisition And
Further Cautionary Announcement
Pamodzi Gold Limited
(Incorporated in the Republic of South Africa)
(Previously Bema Gold SA (Proprietary) Limited)
Registration number 2002/013039/06
JSE Code: PZG & ISIN: ZAE000088563
("Pamodzi Gold" or "Company")
FURTHER ANNOUNCEMENT IN RESPECT OF THE ACQUISITION OF PRESIDENT STEYN GOLD
MINE IN THE FREE STATE FROM THISTLE MINING INCORPORATED AND FURTHER
CAUTIONARY ANNOUNCEMENT
Further to the announcement released on SENS on 3 September 2007 and
published in the press on 4 September 2007, Pamodzi Gold would like to
announce that it has revised the terms of its non-binding indicative
proposal ("revised indicative proposal") to acquire the President Steyn
gold mine in the Free State ("PSGM") from Thistle Mining Incorporated
("Thistle") ("proposed transaction"). The Thistle board has accepted the
revised indicative proposal.
As a result of recent production problems experienced at President Steyn
Gold Mines (Proprietary) Limited, Pamodzi Gold indicated that it is only
willing to progress the proposed transaction subject to, inter alia:
a revision of the purchase consideration from R300 million to R250 million,
at an exchange rate of ZAR 7.00 to the US$, for all the direct and/or
indirect interests in PSGM (the "Purchase Consideration");
Casten Holdings Limited ("Casten") and MC Resources Limited ("MC")
providing PSGM with $1.192 million in funding on September 28, 2007; and
a requirement that production at PSGM exceed 340kg`s in each of October and
November 2007 respectively.
The Purchase Consideration will be satisfied through the a cash payment of
R 250 million, of which R 150 million will be invested into a convertible
debt instrument (convertible in May 2009) in a special purpose vehicle
("SPV"), wholly owned by Pamodzi Resources (Proprietary) Limited, which SPV
shall subscribe for Pamodzi Gold ordinary shares in order to maintain the
Company`s level of black ownership.
The cash portion of the Purchase Consideration will be adjusted by the
difference between the net working capital of PSGM as at 30 June 2007 and
as at the completion date of the proposed transaction. In addition, the
cash portion of the Purchase Consideration will be adjusted downwards by
one half of the aggregate working capital loans advanced to PSGM by Casten
and/or MC and all the interest and fees related thereto. At this stage an
adjustment downwards of between R30 million and R50 million in the cash
portion of the consideration is expected.
Pamodzi Gold ordinary shareholders ("Shareholders") are referred to the
Thistle press release which has been made available on the Pamodzi Gold
website (www.pamodzigold.co.za) for further information on Thistle and its
operations.
FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders are advised that Pamodzi Gold and Thistle are in the process
of finalising formal agreements to implement the proposed transaction and
will release an announcement with the detailed terms of the proposed
transaction on signature. Shareholders are advised to continue to exercise
caution when dealing in their Pamodzi Gold ordinary shares until such a
detailed terms announcement regarding the proposed transaction is
published.
Bedfordview
8 October 2007
Merchant bank and sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Legal Advisors
Cliffe Dekker
Date: 08/10/2007 09:34:24 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
