| Fri 28 Aug 2009, 10:12 | | ABO - Absolute Holdings - General issue of shares for cash Results of the |
|
ABO
ABO
ABO - Absolute Holdings - General issue of shares for cash,Results of the
desktop study and renewal of cautionary announcement
ABSOLUTE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: ABO ISIN No: ZAE000062998
("Absolute" or "the Company")
______________________________________________________________
ANNOUNCEMENT REGARDING:
* GENERAL ISSUE OF SHARES FOR CASH - ABSOLUTE RAISES R7 MILLION TO FUND NEW
PROJECTS
* RESULTS OF THE DESKTOP STUDY UNDERTAKEN ON THE DIKOPANE NN MINING (PTY)
LIMITED ("DIKOPANE") COAL EXPLORATION RIGHTS
* RENEWAL OF CAUTIONARY ANNOUNCEMENT
______________________________________________________________
The Directors of Absolute are pleased to announce that, in accordance with the
general authority to issue shares for cash as approved by shareholders on 10
December 2008, the Company has successfully placed 189,135,135 ordinary shares
("the placed shares"), equating to 13.47 per cent of the Company`s issued share
capital, thereby raising approximately R7 million. The placed shares will be
listed on the JSE with effect from the commencement of business on or about 1
September 2009 and will rank pari passu with the existing ordinary shares of the
Company. Absolute placed these shares with institutional shareholders, all of
whom qualify as "public" shareholders within the meaning of paragraphs 4.25 and
4.26 of the JSE Listings Requirements.
In terms of the private placing, the placed shares were issued at a price of
R0.037 per ordinary shares, which equates to a 9.62% discount to the 30 day
volume weighted average price of Absolute`s shares on the JSE as at 11 August
2009.
Application of the proceeds
The Company will apply the proceeds to funding exploration and resource
definition on its new coal project at Sasolburg and the limestone projects in
the Eastern and Western Cape.
Results of the desktop study
Absolute`s Board is pleased to announce that a desktop study has been completed
on the Sasolburg Coal Project. A prospecting right has been secured over 14,500
hectares in the Vereeniging - Sasolburg coalfields, some 26km southeast of
Sasolburg.
Historical borehole information (51 holes drilled between 1960 and 1985) was
purchased from the Council for Geoscience and 48 of these served as the basis in
the preparation of a geological model. The upper, middle and lower coal units
were all subdivided into a top and bottom coal seam. Contour maps were produced
illustrating the thickness of each coal seam.
Summarised results of geological model of the resources at the
Heilbron farms
Mean Tonnages CV Ash VM FC TS
thickness (million) (Mj/kg) (%) (%) (%) (%)
(m)
Upper coal unit - 0.91 184.8 15.37 46.4 12.3 38.6 1.15
Top seam 4 2 4
Upper coal unit - 1.09 221.6 19.9 34.1 14.0 48.8 0.6
Bottom seam 5 5 5
Middle coal unit 1.96 398.9 17.68 35.9 18.8 41.3 0.54
- Top seam 1 4
Middle coal unit 1.88 382.0 19.48 29.0 20.3 45.9 0.57
- Bottom seam 8 3 5
Lower coal unit - 0.98 197.0 19.62 30.4 20.7 44.1 0.8
Top seam 7 1 7
Lower coal unit - 0.12 15.7 17.74 35.0 20.2 39.8 0.79
Bottom seam 9 8 4
Total/average 1.50 1,400.0 18.49 34.3 17.9 43.8 0.68
8 0 1
According to the geological model an estimated 1.4 billion tons (gross in-situ
resource tonnage) of coal is present on the prospecting area. The coal deposit
can be classified as an inferred coal resource with borehole grid spacing in the
order of 1 km and a drilling density average of less than 1 borehole per 100 Ha
(K Dippenaar: Pr Sci. Nat). This classification of the resource is based on the
SAMREC code (2007 edition) and the "South African guide to the systematic
evaluation of coal resource and coal reserve" (SANS 10320.2004).
Commenting on the results of the desktop study, Absolute CEO Mark Rosslee said,
"this is the type of opportunity Absolute wants to be a part of, where within a
short time period, significant value can be added to a resource base and taken
up the value curve for the benefit of all stakeholders. This acquisition is also
in line with our stated intent of securing and developing coal projects in order
to meet the future demands for energy within a South African context."
The drilling is required to increase geological confidence and improve the
resource classification to an indicated and measured resource. Management is of
the opinion that the resource could be utilised for electricity generation and
has potential for an "Underground Coal Gasification" ("UCG") project.
Pro forma financial effects
The table below reflects the unaudited pro forma financial effects of the above
mentioned general issue of shares for cash. These have been prepared in terms of
the JSE Listings Requirements, are for illustrative purposes only and due to
their nature, may not truly reflect Absolute`s financial position, results of
operations, changes in equity or cash flows. The directors of Absolute are
responsible for the preparation of the pro forma financial effects.
Before Pro forma Change
the issue after the (%)
issue
Basic loss - cents per share (0.32) (0.27) 16%
Headline loss - cents per (0.32) (0.27) 16%
share
Net asset value ("NAV") - 1.89 2.11 11%
cents per share
Net tangible asset value 0.48 0.87 81%
("NTAV") - cents per share
Number of shares in issue 1,403.7 1,592.9 13%
Notes:
I. The "Before the issue" figures are based on Absolute published results for
the half year ended 31 December 2008.
II. The "Pro forma after the issue" column is based on the assumption that the
issue was effective from 01 July 2008 for basic loss per share and headline
loss per share. It is assumed that the proceeds will be utilised for
capital expenditure and working capital and will therefore not have
affected earnings for the period. Loss and headline loss per share,
however, will be diluted by the new number of shares in issue.
III. The "Pro forma after the issue" column is based on the assumption that the
issue was effective on 31 December 2008 for NAV and NTAV purposes.
Renewal of Cautionary Announcement
Further to the cautionary announcement dated 16 July 2009, shareholders are
advised that negotiations with Strategic Natural Resources plc (AIM : SNR) are
still in progress which, if successfully concluded, may have a material effect
on the price of the Company`s securities. Accordingly, shareholders are advised
to continue exercising caution when dealing in the Company`s securities until a
full announcement is made.
JOHANNESBURG
28 August 2009
Corporate advisor Sponsor
Qinisele Resources (Pty) Arcay Moela Sponsors (Pty)
Limited Limited
Date: 28/08/2009 10:12:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
