| Tue 14 Jul 2009, 7:56 | | VUN - Vunani - Subscription for new shares in black wattle colliery |
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VUN
VUN
VUN - Vunani - Subscription for new shares in black wattle colliery
(Proprietary) Limited ("Black Wattle")
VUNANI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/020641/06)
JSE code: VUN
ISIN: ZAE000110359
("Vunani")
SUBSCRIPTION FOR NEW SHARES IN BLACK WATTLE COLLIERY (PROPRIETARY) LIMITED
("Black Wattle")
1. INTRODUCTION
Vunani Capital (Pty) Limited ("Vunani Capital"), a subsidiary of Vunani,
has entered into a Subscription and Shareholders` Agreement with Bisichi
Mining (Exploration) Limited and Black Wattle to subscribe for 20 ordinary
shares and 355 "A" ordinary shares in Black Wattle at par value of R1 each,
to be settled in cash ("the agreement"), resulting in an effective
shareholding of 37.5% in Black Wattle ("the subscription").
2. BACKGROUND INFORMATION
Black Wattle is an underground and opencast coal mine located in the
Witbank Coalfields, near Middelburg, Mpumalanga which produces
approximately 130 000 tonnes per month of high quality export steam coal,
low phosphorous metallurgical coal and Eskom coal. Black Wattle has been
owned and managed by Bisichi Mining PLC since 1994.
3. RATIONALE FOR THE SUBSCRIPTION
The subscription provides a platform for Vunani to expand its investment
activities into coal mining opportunities and to potentially receive
dividends on its Black Wattle ordinary shareholding. The "A" ordinary
shareholders will only be entitled to receive dividends once the agreed
amount of dividends to ordinary shareholders have been distributed as
specified in the agreement.
4. EFFECTIVE DATE
The effective date of the subscription will be the second business day
after the date of fulfilment of the last of the conditions precedent.
5. CONDITIONS PRECEDENT
The subscription is conditional, inter alia, on:
- relevant regulatory approvals, including approvals from the Department
of Minerals and Energy and the South African Reserve Bank, being
obtained; and
- various special resolutions relating to Black Wattle statutory matters
being registered by CIPRO.
6. FINANCIAL EFFECTS
The subscription price is immaterial in relation to Vunani`s current market
capitalisation. It is difficult to estimate the potential future dividends
that will accrue to Vunani in terms of the agreement and it would be
misleading to make any assumptions in regard thereto.
Sandton
14 July 2009
Lead Designated Adviser:
Grindrod Bank Limited
Corporate Adviser and Joint Designated Adviser:
Vunani Corporate Finance
Date: 14/07/2009 07:56:01 Produced by the JSE SENS Department.
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