| Tue 9 Nov 2010, 17:16 | | LAB - Labat - Update on the SAMES Disposal Cancellation of the Primrose |
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LAB
LAB
LAB - Labat - Update on the SAMES Disposal, Cancellation of the Primrose
Acquisition, Withdrawal of Prior Cautionary Announcements and New Cautionary
Announcement
LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa)
(Registration number: 1986/001616/06)
Share Code: LAB & ISIN: ZAE000018354
("Labat" or "the company")
UPDATE ON THE SAMES DISPOSAL, CANCELLATION OF THE PRIMROSE ACQUISITION,
WITHDRAWAL OF PRIOR CAUTIONARY ANNOUNCEMENTS AND NEW CAUTIONARY ANNOUNCEMENT
Further to the announcements dated 20 July 2010, 23 July 2010, 16 August 2010,
31 August 2010 and 27 September 2010, shareholders are advised of the following:
SAMES DISPOSAL
We hereby advise that the Conditions Precedent for the SAMES disposal were not
met timeously and thus Link Private Equity and Investments (Pty) Limited, Aurora
Empowerment Systems (Pty) Limited and Labat are entering into a restructure
agreement which will include the disposal of SAMES, details of which will be
announced in due course.
CANCELLATION OF THE PRIMROSE ACQUISITION
Shareholders are advised that, in relation to the agreement to acquire the gold
processing and smelting operations known as Primrose Gold Metallurgical as well
as ERPM Gold Metallurgical from Primrose Gold Mines (Pty) Limited, a wholly
owned subsidiary of Aurora Empowerment Systems (Pty) Limited, for a purchase
consideration of R38 000 000 through the issue of 38 000 000 Labat ordinary
shares at R1.00 per share ("the Primrose Acquisition"), the acquisition between
Aurora and the vendors of Primrose has lapsed. Thus the acquisition by Labat
from Aurora cannot proceed.
Accordingly, Labat has entered into negotiations with the Primrose vendors for
the acquisition of Primrose directly by Labat. The terms of this acquisition
will be announced in due course.
In addition, the announcement dated 31 August 2010 set out the pro forma
financial effects of the Primrose Acquisition which were based on the reviewed
condensed consolidated results of Labat for the year ended 28 February 2010, as
adjusted by the annualised results for the Primrose Acquisition. These pro forma
effects should have been adjusted for the 6 months of operations only. Once the
new agreement for the direct acquisition of Primrose has been finalised, new pro
forma effects will be published.
WITHDRAWAL OF PREVIOUS CAUTIONARY ANNOUNCEMENTS AND NEW CAUTIONARY ANNOUNCEMENT
As a result of the lapsing of agreements in relation to the Primrose acquisition
and the SAMES disposal, shareholders are advised that negotiations are ongoing
and that they should continue to exercise caution when dealing in their
securities until a further announcement is made. Accordingly, all prior
cautionary announcements are withdrawn and a new cautionary announcement is
hereby issued.
Johannesburg
09 November 2010
Transaction Sponsor
Arcay Moela Sponsors (Proprietary) Limited
Date: 09/11/2010 17:16:01 Produced by the JSE SENS Department.
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