| Fri 24 Oct 2008, 15:50 | | PZG - Pamodzi Gold Limited - Further Cautionary Announcement |
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PZG
PZG
PZG - Pamodzi Gold Limited - Further Cautionary Announcement
PAMODZI GOLD LIMITED
(Formerly Bema Gold South Africa (Proprietary) Limited)
(Incorporated in the Republic of South Africa)
Registration number: 2002/013039/06
Share code: PZG ISIN: ZAE000088563
("the Company" or "Pamodzi Gold")
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement released on SENS on 30 September 2008
("prior cautionary"), shareholders are advised that the Company has finalised
the terms of the remaining R200 million capital raising. The funding has been
sourced for Pamodzi Gold through Pamodzi Resources (Proprietary) Limited. This
additional amount, together with the Industrial Development Corporation
Limited`s ("IDC`s") R200 million loan facility as outlined in the prior
cautionary, concludes the Company`s R400 million capital raising from the
consortium of funders ("funding consortium"). The terms for the R400 million
facility from the funding consortium have been finalised, but drawdown is
subject to the conclusion of legal agreements.
Accordingly the board of directors of the Company consider the Company to be
appropriately capitalised to continue to pursue its developmental strategy.
As per the prior cautionary, shareholders are advised that the Company has
agreed, conditional on the conclusion of the R400 million funding facility, with
a short term debt provider that R103 million of its current exposure to Pamodzi
Gold be converted into an equity exposure. This conversion will be done by means
of a rights offer which is to be underwritten by Pamodzi Resources (Proprietary)
Limited and funded by such short term debt provider. This will result in an
increase in the black empowerment credentials of the Company. The final details
of the rights offer are in the process of being finalised and an announcement
will be made in this regard in the near future.
Shareholders are further advised that the Company is in advanced discussions
with the current holders of the hedge in place at Pamodzi Gold East Rand
(Proprietary) Limited to restructure the current hedge profile.
The implementation of the rights offer and, the restructuring of the hedge will
require certain regulatory approvals from shareholders, the JSE Limited, the
Securities Regulation Panel and the Companies and Intellectual Properties
Registration Office. Shareholders are therefore advised to continue to exercise
caution when dealing in Pamodzi Gold securities, until a further announcement is
made in this regard.
Bruma
24 October 2008
Sponsor and Transaction advisor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24/10/2008 15:50:10 Produced by the JSE SENS Department.
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