| Mon 25 Oct 2010, 8:00 | | MMH - Miranda - Miranda Strategic and Project Update |
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MMH
MMH
MMH - Miranda - Miranda Strategic and Project Update
Miranda Mineral Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/001940/06)
Share code: MMH ISIN: ZAE000074019
("Miranda" or "the Company" or "the Group")
Miranda Strategic and Project Update
The Board wishes to provide shareholders with the following update regarding
corporate and project actions currently in progress:
1. Financial Results
The Company is presently in a closed period as work on the audit and preparation
of the Annual Report are in full swing. Miranda will publish its results for
the August 2010 financial year in the second half of November and plans to mail
the 2010 Annual Report to shareholders before the end of November.
2. Claw Back Offer and Strategic Investment
Shareholders are referred to the announcement dated 3 September 2010, which
detailed a two-step capital raising program for the Group with new strategic
investor Global PS:
- The first stage, being the issue of 37.1 million Miranda shares for an
amount of R23.2 million, was successfully concluded.
- Work on implementation of the second stage of the capital program, being
the partial claw-back offer in terms of which Miranda will raise additional
equity funding in the minimum amount of R75.1 million, continues
unabatedly. This includes preparation of a Circular, Revised listing
particulars and Competent Persons Reports.
- A detailed announcement on the Claw-back Offer and timetable will be made
to shareholders as soon as practicable.
3. Board Restructuring
The Company is presently considering a number of new appointments to both the
Miranda main board of directors as well as the Miranda Coal board of directors.
This is aimed to position both corporate entities with appropriate expertise to
direct the Group through its next development phase:
- In Miranda`s case, this will imply focusing anew on its role as an
incubator and developer of exploration projects.
- The Miranda Coal management team will be strengthened with appropriate
technical expertise to bring its coal mining and development projects in
KwaZulu-Natal to realisation.
4. Miranda Coal Corporate Action
It was previously announced that the Group had identified the separate listing
of Miranda Coal as the most efficient way of bringing to account the intrinsic
value of its coal assets. Following the new capital injection into the Group,
the immediate urgency of this course of corporate action has dissipated
somewhat. Whilst a corporate transaction that creates a "see-through" value of
the coal assets is still being anticipated, the immediate focus will now be on
first bringing Sesikhona to production and on completing a pre-feasibility study
and detailed mine plan on the open-pit sections of Uithoek and Burnside (see
underneath). This will strengthen the value creation process for existing
Miranda shareholders.
5. Sesikhona Mining Project
The anthracite market has seen a resurgence in the past few months and with that
an increase in the number of trade enquiries from interested parties both
locally and abroad. During this time, Miranda Coal has had protracted
discussions with various parties regarding an off take agreement for Sesikhona`s
run-of-mine product. As a consequence, the company will now invite a shortlist
of interested, potential counter-parties to make representation to the Group.
The objective of the exercise will be to secure an off take agreement for
anthracite deliveries to commence as soon as possible in the new year. It is
anticipated that the new, soon-to-be-announced Miranda Coal management team will
drive this process.
6. Uithoek and Burnside Development Projects
An internal pre-feasibility investigation into developing the contiguous open-
pit sections of the Uithoek and Burnside Prospecting Right areas, has been
concluded. The results of this exercise are extremely encouraging to the Board
and indicative of a robust first phase mining project. Miranda Coal has decided
to commence with a formal pre-feasibility study to provide investors with
greater certainty of the extent and viability of the project. The new Miranda
Coal team will also take responsibility for this process.
Shareholders are also referred to the October newsletter on Miranda`s website,
which may be accessed at http://www.mirandaminerals.com/downloads/October_2010_
Shareholder_Letter_(MC02-2010).pdf. Further updates on all of the above matters
will follow in due course.
Centurion
25 October 2010
Sponsor:
PricewaterhouseCoopers Corporate Finance (Proprietary) Limited
Corporate Adviser:
Touchstone Capital (Pty) Ltd
Date: 25/10/2010 08:00:02 Produced by the JSE SENS Department.
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