| Mon 7 Jul 2008, 16:30 | | WEZ - Wesizwe Platinum Limited - General Issue Of Shares For Cash |
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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 R 200-MILLION TO FUND PROJECT DEVELOPMENT
Introduction
At the annual general meeting of the Company held on 16 August 2007, the
requisite majority of Wesizwe shareholders approved an ordinary resolution
authorising the directors to issue shares for cash in accordance with
paragraph 5.52 of the JSE Limited ("JSE") Listings Requirements ("general
authority"). In accordance with the general authority the Company has
successfully placed 30,000,000 ordinary shares ("the placed shares"), equating
to 5.40% of the Company`s issued share capital, raising R202,500,000.00. The
placed shares will be listed on the JSE with effect from the commencement of
business on the 8th July 2008 and rank pari passu with the existing ordinary
shares of the Company.
In terms of the private placing, Wesizwe placed 30,000,000 ordinary shares at
an issue price of R6.75 per ordinary share, being a 9.63% discount to the 30
day volume weighted average price of R7.47 per ordinary share as at 25 June
2008.
The shares were placed with institutional shareholders, who qualify as
"public" shareholders within the meaning of paragraphs 4.25 and 4.26 of the
JSE Listings Requirements.
Application of proceeds
Wesizwe announced on 31 March 2008 that on the back of the positive results of
the bankable feasibility study concluded on its core Frischgewaagd-Ledig
project that capital construction would commence in the third quarter of 2008.
The proceeds will be used to fund the early works programme and the initial
project construction phase. This includes surface rights acquisition costs,
bulk earth works, site civil preparations, engineering and capital items.
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 - 19.17 18.03 -5.96
cents per share
Headline loss - 19.17 18.03 -5.96
cents per share
Net asset value 216.31 239.62 10.91
("NAV") - cents
per share
Net tangible 178.42 203.72 14.31
asset value
("NTAV") - cents
per share
Number of shares 555 489 864 585 489 864
in issue
Notes:
i. The "Before the issue" figures are based on Wesizwe published reviewed
and condensed results for the six months ended 30 December 2007.
ii. The "Pro forma after the issue" column is based on the assumption that
the issue was effective on 1st January 2008 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 1 January 2008 for NAV and NTAV purposes.
Melrose, Johannesburg
07 July 2008
Corporate advisor Sponsor
Qinisele Resources (Pty) Limited Investec Bank Limited
Enquiries
College Hill
Fred Cornet
+27 83 307 8286
Ashleigh Dubbelman
+27 83 225 0438
Wesizwe Platinum +27 11 994 4600
Mike Solomon, CEO
www.wesizwe.com
Date: 07/07/2008 16:30:02 Produced by the JSE SENS Department.
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