OTR Mining Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/006508/06)
Share code: OTR
ISIN code: ZAE000025839
("OTR")
CAUTIONARY ANNOUNCEMENT PERTAINING TO THE ACQUISITION BY OTR OF 25%
OF THE SHARES IN AND CLAIMS AGAINST RK NUMBER 1 (PROPRIETARY) LIMITED
("RK1")
Further to the announcement dated 27 July 2001 ("the 27 July 2001
announcement"), which recorded the extension granted to OTR to exercise its
option to acquire 25% of the shares in and claims against RK1 until 31
December 2001 ("the acquisition"), LPC Manhattan is authorised to announce
the following:
As set out in the 27 July 2001 announcement, the acquisition was to be
settled by the issue to GB Mining (Proprietary) Limited ("GB Mining"), the
vendor of RK1, of 17 750 000 new OTR shares at 23,7 cents per share and the
allocation to GB Mining of the 11 000 000 existing shares currently held in
trust by OTR's attorneys ("the consideration shares").
GB Mining has subsequently finalised agreements for mineral rights that were
being negotiated at the time of the 27 July 2001 announcement, on behalf of
RK1. These mineral rights may result in higher plant feed grades and
subsequently metallurgical process changes, which may lead to additional
capital being required by RK1, resulting in a increase in the number of
consideration shares to be issued by OTR to maintain its effective 25%
shareholding in RK1.
A further announcement detailing the final amount raised by RK1 and the
consequent number of consideration shares to be issued ("the revised
announcement") will be published shortly.
OTR shareholders and option holders are accordingly advised to exercise
caution in dealing in their OTR shares or options until the revised
announcement has been made.
A circular to convene a general meeting of OTR shareholders and option
holders setting out details of the acquisition, will be posted to
shareholders within 28 days of the publication of the revised announcement.
Fourways
14 September 2001
Sponsor
LPC Manhattan Sponsors (Pty) Ltd
(Registration number 1999/0024792/07)
Attorneys
FLUXMAN RABINOWITZ RAPHAELY WEINER INC.
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