| Thu 2 Oct 2008, 17:55 | | ARQ - Anooraq - Market Update On Financing Strategy For Lebowa Acquisition And |
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ARQ
ARQ
ARQ - Anooraq - Market Update On Financing Strategy For Lebowa Acquisition And
Cautionary Announcement
Anooraq Resources Corporation
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
JSE share code: ARQ
TSXV share code: ARQ
AMEX share code: ANO
ISIN: CA03633E1088
("Anooraq" or "the Company
Market update on financing strategy for Lebowa acquisition and cautionary
announcement
Anooraq announced today that the Company and its controlling shareholder, the
Pelawan Trust ("Pelawan"), are in advanced stages of negotiations for the
conclusion of a financing for the Company, in light of the current downturn in
international equity markets.
The successful conclusion of these negotiations will result in Pelawan
completing the unconditional exercise of all of the Pelawan warrants, referred
to in the Company`s news release dated 24th December 2007, and the Company not
effecting a general public offering of new Anooraq shares. In terms of the
financing, the Company will still issue new Anooraq shares in an amount of
approximately ZAR150 million to the Company`s ESOP and Community trusts,
referred to in the Company`s news release of 14th April, 2008.
The financing, together with the conclusion of the debt finance facility from
Standard Chartered Bank, detailed in the Company`s news release of 20th May
2008, will enable the Company to finance its acquisition of a 51% controlling
interest in Lebowa Platinum Mines and its current 50:50 joint ventures with
Anglo Platinum Limited ("the Lebowa transaction").
In accordance with the definitive agreements for the Lebowa transaction, closing
of the Lebowa transaction is targeted for 30th November 2008.
Detailed terms of the financing, once finalised, will be announced by the
Company once requisite consents for such financing have been obtained from the
Department of Minerals and Energy, South Africa, and other relevant parties.
The negotiations referred to above, when successfully concluded, may have a
material impact on the price of the Company`s securities. Shareholders of
Anooraq are therefore advised to exercise caution when dealing in the Company`s
securities until a further announcement is made.
For further information on Anooraq and its South African properties, please
visit our website www.anooraqresources.com or call investor services in South
Africa at +27 11 883 0831 or in North America at 1 800 667 2114.
On behalf of the board of directors
Philip Kotze
President and CEO
2 October 2008
Sandton
Corporate adviser and sponsor : QuestCo Sponsors (Pty) Limited
Transaction adviser : Standard Bank
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
to secure 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 information form filed on SEDAR at www.sedar.com or in form 20-
F with the United States Securities and Exchange Commission and its other home
jurisdiction filings that are available at www.sedar.com.
Date: 02/10/2008 17:55:02 Produced by the JSE SENS Department.
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