| Wed 21 May 2008, 8:30 | | ARQ - Anooraq Concludes A Binding Credit Approved |
|
ARQ
ARQ
ARQ - Anooraq Concludes A Binding Credit Approved Term Sheet With Standard
Chartered Bank
Anooraq Resources Corporation
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
JSE share code: ARQ & ISIN: CA03633E1088
TSXV share code: ARQ & ISIN: CA03633E1088
AMEX share code: ANO & ISIN: CA03633E1088
("Anooraq" or "the Company")
ANOORAQ CONCLUDES A BINDING CREDIT APPROVED TERM SHEET WITH STANDARD
CHARTERED BANK
Anooraq is pleased to announce that it has executed a binding, credit
approved term sheet with Standard Chartered Bank ("Standard Chartered") to
provide the Company with sole underwritten debt finance of up to ZAR 1.7
billion for the acquisition by the Company of an effective 51% of Lebowa
Platinum Mines ("Lebowa"), an operating platinum group metals ("PGM") mine
from Anglo Platinum Limited, as more fully described in the Company`s news
release of 14 April 2008 ("the Lebowa transaction").
Anooraq has agreed to acquire Lebowa for an aggregate cash consideration of
ZAR 3.6 billion. The Company intends to fund the purchase price through a
combination of debt and equity. The exercise of share purchase warrants by
Pelawan Investments (Pty) Ltd ("Pelawan") in December 2007, in an aggregate
amount of ZAR 1.586 billion, will provide a portion of the funds required
by Anooraq for this purpose. Details of the Pelawan warrant exercise were
set out in a Company news release dated 24 December 2007.
In addition Pelawan, the majority shareholder in Anooraq, has advised that
it has executed a credit approved term sheet with Standard Chartered to
provide Pelawan with sole underwritten acquisition debt finance of up to
ZAR 700 million. Pelawan will apply these funds towards refinancing its
existing bridge loan facility with Rand Merchant Bank.
Implementation of the abovementioned transactions are subject to fulfilment
of certain conditions precedent standard for transactions of this nature,
including the conclusion of definitive financing agreements. In terms of
the financing agreements, Anooraq and Pelawan are not obliged to enter into
any hedging contracts in respect of Anooraq`s future PGM production.
Anooraq`s Acting President and CEO, Tumelo Motsisi, comments that "We are
pleased to have obtained sole underwritten and significant debt finance
from a major international bank, bearing testament to the underlying
quality of the asset base we are acquiring from Anglo Platinum. This debt
financing package is part of Anooraq`s acquisition finance strategy and not
only is it a rousing endorsement for our Lebowa acquisition but it also
represents a major step towards implementation of the Lebowa transaction."
Sean Wallace, Group Head of Corporate Finance at Standard Chartered Bank
said, "Standard Chartered has a critical role to play in Africa`s
sustainable economic development. The Bank is playing a leading role in
supporting trade and investment which is driving economic growth on the
continent. We are delighted to be partnering Anooraq with their debt
finance, supporting continued economic development in the region."
On behalf of the Board of Directors
Tumelo Motsisi
Acting President and CEO
20 May 2008
Sandton
Sponsor
QuestCo Sponsors (Pty) Limited
Further information
For further details, please visit the Company`s website at
www.anooraqresources.com or contact Investor Services:
Anooraq (South Africa)
Joel Kesler, Head of Business Development
+27 11 883 0831
Anooraq (North America)
Investor Relations: +1 604 684 6365
Toll free: +1 800 667 2114
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.
The American Stock Exchange has neither approved nor disapproved the
contents of this press release.
Cautionary and Forward Looking Information:
This release includes certain statements that may be deemed "forward
looking statements". All statements in this release, other than statements
of historical facts, that address potential acquisitions, future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that Anooraq expects are forward
looking statements. Anooraq believes that such forward looking statements
are based on reasonable assumptions, including assumptions that: the Lebowa
transaction will complete; Lebowa will continue to achieve production
levels similar to previous years; the planned Lebowa expansions will be
completed and successful; Anooraq will be able future debt and equity
financing on favourable terms; and the Ga Phasha and Platreef Project
exploration results will continue to be positive. Forward looking
statements however, are not guarantees of future performance and actual
results or developments may differ materially from those in forward looking
statements. Factors that could cause actual results to differ materially
from those in forward looking statements include market prices,
exploitation and exploration successes, changes in and the effect of
government policies with respect to mining and natural resource exploration
and exploitation and continued availability of capital and financing, and
general economic, market or business conditions. Investors are cautioned
that any such statements are not guarantees of future performance and those
actual results or developments may differ materially from those projected
in the forward looking statements. For further information on Anooraq,
investors should review the Company`s annual Form on 20-F with the United
States Securities and Exchange Commission and its home jurisdiction filings
that are available at www.sedar.com.
Editors Note:
Standard Chartered PLC, listed on both the London Stock Exchange and the
Hong Kong Stock Exchange, ranks among the top 25 companies in the FTSE-100
by market capitalisation. The London-headquartered group has operated for
over 150 years in some of the world`s most dynamic markets, leading the way
in Asia, Africa and the Middle East. Its income and the number of
employees have more than doubled over the last five years primarily as a
result of organic growth and supplemented by acquisitions. Standard
Chartered aspires to be the best international bank in its markets through
leading by example to be the right partner for its stakeholders. The group
now employs 73,000 people, representing 115 nationalities, in more than
1,700 branches and outlets located in over 70 countries. The bank derives
more than 90 per cent of its operating income and profits from Asia, Africa
and the Middle East, with balanced income derived from both Wholesale and
Consumer Banking. The group is committed to building a sustainable business
over the long term and is trusted worldwide for upholding high standards of
corporate governance, social responsibility, environmental protection and
employee diversity. For more information, please visit:
www.standardchartered.com
Date: 21/05/2008 08:30:03 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.
