| Fri 14 Nov 2008, 16:00 | | ARQ - Anooraq - Transaction Update And Further Cautionary Announcement |
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ARQ
ARQ
ARQ - Anooraq - Transaction Update And Further 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")
TRANSACTION UPDATE AND FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcement dated 2 October 2008,
which provided an update on the anticipated Anooraq financing strategy for the
purchase by Anooraq from Anglo Platinum Limited ("Anglo Platinum") of an
effective 51% of the Lebowa Platinum Mine ("Lebowa") and an effective 1%
controlling interest in each of the Ga-Phasha, Boikgantsho and Kwanda joint
venture projects, which are currently held by Anooraq and Anglo Platinum in 50-
50 joint ventures ("the Transaction").
The following announcement provides a further update on the status of the
Transaction and the associated financing strategy.
Transaction Update
Detailed terms of the Transaction were announced on 14 April 2008. As set out
in this announcement, a component of the Transaction, which informed commercial
terms, was the development and financing of the Middelpunt Hill UG2 expansion
project ("MPH Project") at Lebowa. It was announced that the MPH Project would
be developed by Anooraq and Anglo Platinum as part of the then current mine plan
and capital development program for Lebowa, which had been approved by Anglo
Platinum in May 2007.
During the period July 2008 to October 2008, global economic conditions
deteriorated significantly, contributing to a material decline in platinum group
metal prices and resulting in constrained debt and equity capital markets.
On 23 October 2008, Anglo Platinum announced that it was reviewing the costing
and scheduling of all its capital projects, including the MPH Project, in light
of current metal price levels and uncertainty in global markets. Anooraq is
participating in the review of the MPH Project costing and scheduling.
Furthermore, Anglo Platinum and Anooraq have agreed to review the current Anglo
Platinum approved mine plan and capital program for Lebowa.
As a result of these developments, Anglo American plc, Anglo Platinum, Anooraq
and Pelawan Investments (Pty) Ltd ("the Parties") are currently in advanced
stage discussions surrounding the Transaction, as well as the associated
financing strategy, and will provide a detailed Transaction update to the market
as soon as possible after such discussions have been concluded.
The Parties remain committed to concluding the Transaction as soon as
practically possible. However, as a result of the review process referred to
above, the Transaction will not close on 30 November 2008, as originally
anticipated. The Parties are confident that the Transaction will close during
the first quarter of 2009.
Given the delay in Transaction implementation, Anglo Platinum has agreed to
increase its existing loan facility to Anooraq by an amount of ZAR 30 million.
Further Cautionary Announcement
Any amendments to the Transaction, as well as the associated financing strategy,
arising from the abovementioned developments may have a material impact on the
price of Anooraq`s securities. Shareholders of Anooraq are therefore advised to
continue to exercise caution when dealing in Anooraq`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
Sandton
14 November 2008
Corporate adviser and sponsor to Anooraq
QuestCo
Transaction advisers to Anooraq
North Corporate Finance Advisory Services
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 www.sedar.com or its 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: 14/11/2008 16:00:01 Produced by the JSE SENS Department.
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