| Tue 5 Jul 2011, 17:26 | | BAU - Bauba Platinum Limited - Bauba Platinum successfully raises R50 million to |
|
BAU
BAU
BAU - Bauba Platinum Limited - Bauba Platinum successfully raises R50 million to
fund exploration
BAUBA PLATINUM LIMITED
(formerly Absolute Holdings Limited)
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
Share code: BAU ISIN: ZAE000145686
("Bauba Platinum" or "the Company")
BAUBA PLATINUM SUCCESSFULLY RAISES R50 MILLION TO FUND EXPLORATION
The board of directors of Bauba Platinum ("the Board") is pleased to advise
shareholders that Bauba Platinum has raised an amount of R50 million by way of
an issue of 27 777 778 ordinary shares for cash to further fund its key platinum
exploration projects on the Eastern Limb of the Bushveld. The Company has
entered into a Subscription Agreement ("the Agreement") in terms of which
Trinity Asset Management (Proprietary) Limited ("Trinity Asset Management"), or
its nominee, will subscribe for 27 777 778 new Bauba Platinum ordinary shares
("the Subscription Shares") at an issue price of R1.80 per share which
constitutes 22.8% of the fully diluted issued share capital of Bauba Platinum
("the Subscription"). The issue price of the Subscription Shares represents a
discount of 4% to the 30 day volume weighted average price of R1.87 per ordinary
share as at 27 June 2011.
In terms of paragraphs 4.25 and 4.26 of the Listings Requirements of JSE Limited
("the JSE"), Trinity Asset Management is deemed to be a `public shareholder`,
and not a related party as defined in section 10 of the JSE Listings
Requirements.
The R50 million has been raised pursuant to the authority to raise up to R150
million through the issue of 30 000 000 new ordinary shares granted to the Board
at the general meeting of the Company held on 7 June 2010, and the general
authority granted to the Board at the annual general meeting of the Company held
on 19 October 2010, by the requisite majority of Bauba Platinum shareholders in
accordance with paragraphs 5.51 and 5.52 of the JSE Listings Requirements.
The Subscription Shares are expected to be listed on the JSE by the 22 July 2011
and will rank pari passu with the existing ordinary shares of the Company.
Bauba Platinum will use the funding to expedite its exploration drilling
programme on the Southern and Central clusters of its Eastern Limb concessions
with the principal objective being the delineation of an inferred resource over
these areas.
Bauba Platinum`s Chief Executive Officer, Grant Pitt, comments: "This
investment, by Trinity Asset Management, is an important step forward as it
supports the inherent value opportunity within Bauba Platinum and shows
confidence in our assets and the Company`s intended strategy going forward."
Trinity Asset Management Chief Executive Officer, Quinton George, said, "Given
the increase in supply pressures currently being experienced in the platinum
group metals market, Bauba Platinum represents a comparatively inexpensive entry
point into the platinum industry for our investors. The significant targeted
resource base of Bauba Platinum together with the strategic location of its
prospecting rights provides value creation opportunities for investors through
both the development of the Company`s current resource base and through regional
consolidation."
The table below sets out the unaudited pro forma financial effects of the
Subscription on Bauba Platinum`s loss per share, headline loss per share, net
asset value per share and tangible net asset value per share.
The unaudited pro forma financial effects have been prepared to illustrate the
impact of the Subscription on the reviewed interim results for the six months
ended 31 December 2010, had the Subscription occurred on 1 July 2010 for
statement of comprehensive income purposes and on 31 December 2010 for statement
of financial position purposes. The unaudited pro forma financial effects have
been prepared using accounting policies that comply with International Financial
Reporting Standards and that are consistent with those applied in the reviewed
interim results of Bauba Platinum for the six months ended 31 December 2010 and
the annual financial statements for the year ended 31 June 2010.
The unaudited pro forma financial effects, which are the responsibility of the
Board, are provided for illustrative purposes only and, because of their pro
forma nature may not fairly present Bauba Platinum`s financial position, changes
in equity, results of operations or cash flow.
Before the Pro forma Change
Subscription after the (%)
Subscription
Loss per share (cents) (33.1) (25.6) (22.6)
Headline loss per share (cents) (32.2) (24.9) (22.6)
Net asset value per share (cents) 41.0 71.4 74.2
Net tangible asset value per share 34.3 66.3 93.5
(cents)
Weighted average number of shares in 93 787 119 121 564 897 29.6
issue
Total number of share in issue at 90 509 588 118 287 366 30.7
period end
Notes:
1 The "Before the Subscription" loss and headline loss per share have been
extracted without adjustment from the reviewed published results of Bauba
Platinum for the six months ended 31 December 2010. The "Before the
Subscription" net asset value and tangible net asset value per share have
been calculated from the financial information presented in the reviewed
published results of Bauba Platinum for the six months ended 31 December
2010.
2 The "Pro forma after the Subscription" assumes:
a The issue of 27 777 778 new Bauba Platinum ordinary shares at R1.80
per share;
b Transaction costs of R2.6 million; and
c The proceeds will be utilised for capital expenditure and working
capital and will therefore not affect earnings for the period. Losses
per share, however, will be diluted by the new number of shares in
issue.
3 The effects on loss per share and headline loss per share are calculated
based on the assumption that the Subscription was effected on 1 July 2010.
4 The effects on net asset value per share and tangible net asset value per
share are calculated based on the assumption that the Subscription was
effected on 31 December 2010.
Fourways, Johannesburg
5 July 2011
Corporate advisor Sponsor
Qinisele Resources (Proprietary) Limited Merchantec Capital
Date: 05/07/2011 17:26:16 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.
