| Tue 9 Dec 2008, 15:42 | | WEZ - Wesizwe Signs Definitive Transaction Agreements Publication Of Pro Forma |
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WEZ
WEZ
WEZ - Wesizwe Signs Definitive Transaction Agreements Publication Of Pro Forma
Financial Effects And Withdrawal Of Cautionary Announcement
Wesizwe Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ & ISIN: ZAE000075859
(the "Company" or "Wesizwe")
WESIZWE SIGNS DEFINITIVE TRANSACTION AGREEMENTS
PUBLICATION OF PRO FORMA FINANCIAL EFFECTS AND WITHDRAWAL OF CAUTIONARY
ANNOUNCEMENT
Shareholders of Wesizwe are referred to the detailed terms and cautionary
announcement dated 2 September 2008 and further cautionary announcements dated
15 October 2008 and 25 November 2008 respectively ("the Announcements")
regarding Wesizwe`s proposed acquisition of the 37% effective participation
interest held by Anglo Platinum Limited`s ("APL") wholly owned subsidiary
Rustenburg Platinum Mines Limited ("RPM") in the Western Bushveld Joint Venture
("WBJV") and the concurrent transaction with Platinum Group Metals Limited
("PTM") ("the Proposed Transactions").
In terms of the Proposed Transactions, Wesizwe gains full ownership of its core
Frischgewaagd-Ledig Project whilst retaining its 26% shareholding in the WBJV`s
Projects 1 & 3.
Wesizwe is pleased to announce that definitive transaction agreements giving
effect to the Proposed Transactions have been signed by the respective parties.
Mike Solomon, CEO of Wesizwe Platinum said "The signing of the definitive
transaction agreements signals yet another milestone in our stated strategy of
bringing our projects to account while at the same time being conscious of value
accretive corporate opportunities. I believe, the latest step in the
consolidation of the Pilanesberg Complex allows all parties to draw maximum
value from their respective stakes in what is a significant and exciting
project. Wesizwe`s next priority will now be to begin ground work on our core
Frischgewaagd-Ledig Project in line with our revised project timetable, and we
are confident that the approach taken by the board and announced to the market
in early November is achievable."
Wesizwe shareholders are advised that a circular to shareholders will be sent in
due course.
Unaudited pro forma financial effects of the Proposed Transactions
The table below sets out the unaudited pro forma financial effects of the
Proposed Transactions on Wesizwe. The unaudited pro forma effects are prepared
for illustrative purposes only and may not fairly represent Wesizwe`s results,
financial position and changes in equity after the Proposed Transactions. It has
been assumed for the purposes of the pro forma financial effects that the
Proposed Transactions took place with effect from 1 January 2008 for income
statement purposes and 30 June 2008 for balance sheet purposes.
The unaudited pro forma financial effects are the responsibility of the
directors of Wesizwe.
Before After Percentage
Change %
Loss for the year 20,331,413 20,331,413
(R)
Headline loss for 20,331,413 20,331,413
the year (R)
No of shares in 555,489,846 767,339,971
issue
Weighted average 555,239,369 767,089,494
number of shares in
issue
Net asset value (R) 1,186,075,551 2,348,560,191
Intangible assets 240,468,134 994,346,219
(R)
Net tangible assets 945,607,417 1,354,213,972
(R)
Basic loss per share 3.66 2.65 -27.6
cents
Headline loss per 3.66 2.65 -27.6
share cents
Net asset value per 213.52 306.07 43.3
share cents
Net tangible asset 170.23 176.48 3.7
per share cents
Notes:
(i) The "Before" financial information is based on Wesizwe`s published reviewed
condensed interim results for the six months ended 30 June 2008.
(ii) The "After" basic loss and headline loss per share have been adjusted to
include the issue of the 211 850 125 ordinary shares at R5.48
(iii)The "After" net asset value per share have been adjusted to include the
issue of the 211 850 125 ordinary shares at R5.48 per share.
(iv) The "After" column is based on the assumption that PTM has made the
R408,606,555 capital contribution to the WBJV Projects 1 & 3 on Wesizwe`s
behalf
Withdrawal of Cautionary Announcement
As the financial effects of the Proposed Transactions have now been published,
Wesizwe shareholders are no longer required to exercise caution when dealing in
their Wesizwe securities.
Melrose, Johannesburg
09 December 2008
Corporate advisor
Qinisele Resources (Pty) Limited
Sponsor:
Investec Bank Limited
Legal advisor
Bell Dewar
Reporting accountants
KPMG
Competent person
The Mineral Corporation
Date: 09/12/2008 15:42:02 Produced by the JSE SENS Department.
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