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SAL SALD
SAL
SAL - Sallies Limited - Facility Agreement and Renewal of Cautionary
Announcement
Sallies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1903/001879/06)
Share code: SAL ISIN: ZAE000022588
JSE Code: SALD ISIN: ZAE000117305
("Sallies" or "the Company")
FACILITY AGREEMENT AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Facility agreement
The board of directors of Sallies is pleased to announce that the Company has
entered into a fixed term facility agreement with Maghreb Minerals Plc
("Maghreb") whereby Maghreb has agreed to provide Sallies with an unsecured
facility of up to $8 million to be used to fund the working capital needed to
restart operations at the Witkop Mine when the decision to restart is made. The
decision to restart is dependent inter alia on receiving orders for tonnages of
sufficient magnitude. Sale contracts are currently under negotiation and are
expected to be concluded in the coming months as the Company works with key
customers to rebuild its off-take commitment. Maghreb is a current shareholder
with an 11.4% in Sallies. Both Sallies and Maghreb are controlled by Firebird
Management LLC, through its funds Firebird Global Master Fund Ltd and Firebird
Global Master Fund II Ltd (together "Firebird").
The principal terms of the facility agreement are as follows:
Maghreb will provide Sallies with an initial advance of $2 million. Thereafter,
Sallies may apply at any time before 31 December 2011, to draw a sum of not less
than $1 million and not more than $2 million and Maghreb will be entitled at its
absolute discretion to grant or refuse such a drawdown;
the loan is unsecured;
interest on the loan will be charged at a rate of 10% per annum;
the first interest will be paid on 30 June 2011 and quarterly thereafter. The
principal amount and any accrued but unpaid interest will be repaid by no later
than 31 December 2012; and
the facility agreement is conditional upon the approval of the South African
Reserve Bank.
Renewal of cautionary announcement
Sallies shareholders and debenture holders are reminded that the proposed
transaction between Maghreb and Firebird as previously announced on 28 December
2010 remains conditional and the Sallies shareholders and debenture holders are
advised to continue to exercise caution when dealing in their shares and
debentures respectively, until such time as the terms of the mandatory offers
are published
Johannesburg
19 January 2011
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 19/01/2011 13:08:02 Produced by the JSE SENS Department.
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