| Tue 9 Nov 2010, 16:00 | | PGL - Pallinghurst Resources Limited - Pallinghurst completes Tshipi/ Jupiter |
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PGL
PGL
PGL - Pallinghurst Resources Limited - Pallinghurst completes Tshipi/ Jupiter
transaction
PALLINGHURST RESOURCES LIMITED
(Previously Pallinghurst Resources (Guernsey) Limited)
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: PALLRES ISIN: GG00B27Y8Z93
Share code on the JSE: PGL
("Pallinghurst" or the "Company")
Pallinghurst completes Tshipi/ Jupiter transaction
1 Introduction
Further to the announcements dated 1 March 2010 and 16 August 2010, the
Directors are now pleased to announce that as the conditions precedent have
been satisfied and all contractual obligations have been met, the Company
has completed the transaction exchanging its indirect interest in Tshipi e
Ntle Manganese Mining (Pty) Ltd ("Tshipi") for new shares in Jupiter Mines
Limited ("Jupiter") (the "Transaction").
Estimated fair value gain on completion of the Transaction
Number of Closing US$/AUD Amount US$
Jupiter Jupiter exchange
shares share rate on
acquired price in 8
AUD on 8 November
November 2010
2010
Fair value of 7.71% (27,156,456)
equity interest in
Tshipi, loans and
cash vended into
Jupiter
Fair value of Jupiter 200,264,526 0.390 1.015 79,302,830
shares received
Total fair value gain 52,146,374
on the Transaction
Estimated transaction (300,000)
costs
Total fair value gain on the
Transaction less estimated
transaction costs
51,846,374
The estimated transaction costs are likely to change, as the amount of
these costs has not yet been finalised. Any variation in transaction costs
will not be material to Pallinghurst.
The key differences between the financial effects of the Transaction as
disclosed on 16 August 2010 and the impact as disclosed above are the
variance in the Jupiter share price (AUD0.270 per share on 12 August 2010),
and the variance in the US$/AUD exchange rate (from US$0.902/AUD1 on 12
August 2010 to US$1.015/AUD1 on 8 November 2010).
2 Completion of POSCO transaction
In terms of the POSCO transaction which was announced on 4 June 2009, the
Company received US$6,867,477 which was previously being held in escrow in
return for part of its interest in Tshipi on 4 November 2010. Accordingly
the POSCO transaction is now complete. The transaction has had no impact on
the Company`s net asset value or earnings.
Guernsey
9 November 2010
Investment bank and sponsor
Investec Bank Limited
Date: 09/11/2010 16:00:05 Produced by the JSE SENS Department.
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