| Tue 26 May 2009, 8:00 | | WEZ - Wesizwe - Wesizwe Secures R550 Million Standby Equity Facility |
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WEZ
WEZ
WEZ - Wesizwe - Wesizwe Secures R550 Million Standby Equity Facility
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 SECURES R550 MILLION STANDBY EQUITY FACILITY
Wesizwe Platinum Limited is pleased to announce that it has successfully
negotiated and signed a formal agreement for a R550 million standby equity
facility with US based investment fund YA Global Investments, L.P.
("Yorkville").
The facility, which is the first such facility to be negotiated by a South
African company, will be in place for 36 months and provide Wesizwe with the
flexibility to access significant liquidity, through the issue of new Company
shares, at its sole discretion.
Under the terms of the agreement, Wesizwe is entitled to offer Yorkville newly
issued Wesizwe shares for up to a total value of R550 million and in turn
Yorkville will be obliged to subscribe for and purchase these new shares.
Commenting on the agreement, Michael Solomon, Wesizwe CEO, said: "We are very
pleased to have secured this agreement in the current market conditions. This is
a first for a South African company and testimony of the solid fundamentals of
our core Frischgewaagd-Ledig project.
Not only does this facility provide us with complete flexibility to place shares
over a period of time and raise the necessary tranches of capital but it also
limits shareholder dilution by only doing so if and when project value has been
delivered."
Any new Wesizwe shares issued in terms of the facility will be issued at market
related prices, using the Company`s existing General Authority to issue shares
for cash in terms of the JSE Limited Listings Requirements approved by
shareholders at the last Annual General Meeting in August 2008.
"This move is very positive for Wesizwe and completely aligned with our revised
capital construction strategy which includes a flexible modular approach to
developing our 350,000 ounce per annum platinum group metals mine.
The R550 million Yorkville facility combined with the R222 million existing cash
on hand allows us to progress construction in-line with the current project
timeline.
Further, current low market valuations of project development companies is
garnered through Yorkville`s willingness to conclude the equity facility at
market prices. This supports the company contentions that value will flow
through as the project build programme unfolds" concluded Solomon.
About Yorkville Advisors LLC:
Founded in 2001, Yorkville has a broad mandate to invest in both equity and debt
instruments in public and private companies. With assets under management
reaching over US$1bn, the company has offices in major financial areas around
the world, housing over 50 employees, half of them investment professionals. The
company prides itself on its creativity and its innovativeness in finding
flexible financing structures including the Equity Facility.
www.yorkvilleadvisors.com
ENQUIRIES
Wesizwe +27 11 994 4600
Mike Solomon, CEO
www.wesizwe.com
Qinisele Resources
Dennis Tucker +27 82 492 4957
Andrew Brady +27 82 805 2935
College Hill +27 11 447 3030
Fred Cornet
Ashleigh Dubbelman
26 May 2009
Sponsor: Investec Bank Limited
Date: 26/05/2009 08:00:03 Produced by the JSE SENS Department.
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