THE AFRIKANDER LEASE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1921/006955/06)
("Aflease" or "the company")
RAISING OF CAPITAL FOR EXPANSION
Introduction
The Board of Aflease has resolved to embark on a capital expansion plan
which, it is anticipated will, within the next six to twelve months, have
the following effect on operations and performance:
Substantially increase plant throughput
Materially improve recovery rates
Significantly speed up the leaching cycle time
Funding the Expansion
The capital expansion plan will be financed through a combination of equity
and debt.
Equity
Aflease has, with immediate effect, raised R4,9 million through a private
placement of shares with Trinity Holdings (Pty) Ltd and its clients. The
transaction accords with the general authority for directors to issue shares
for cash and was agreed to by shareholders at the last annual general
meeting. In the process Aflease will issue 3,5 million new shares of 2
cents each, for cash, at an issue price of 140 cents per share. This price
is marginally above the 30 day weighted moving average as at 31 July 2001,
the date when the terms of the deal were agreed. The cash will be available
to Aflease within 10 business days. This placement complies with the
requirements of section 222 of the Companies Act and is subject to approval
by the JSE Securities Exchange South Africa ("JSE").
A second round of capital raising will be undertaken in the near future,
which will be limited to the issue of 7 million new shares, subject to
regulatory approval. Aflease's majority shareholder, Benoryn Investment
Holdings (Pty) Limited, representing the interests of the company's Chairman
and Managing Director Peter Skeat, has undertaken to "take up" not less than
3,5 million of these new shares. Accordingly, the total fresh equity raised
by Aflease will not be less than R9,8 million.
Debt
In addition to its plans to raise equity, Aflease has obtained a range of
offers from various outside institutions to provide a further R10 million in
debt finance. Shareholders will be informed as soon as a final selection has
been made and negotiations concluded.
Johannesburg
15 August 2001
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