Western Areas Limited - Further Cautionary Announc
Western Areas Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1959/003209/06
Share code: WAR
ISIN No : ZAE000016549
("Western Areas")
Further cautionary announcement
Further to the cautionary announcements dated 25 April 2001, 19 June 2001, 3
August 2001 and 17 September 2001, shareholders are advised that Western
Areas has decided not to sell its 50% interest in the South Deep Project.
Instead, shareholders are advised that Western Areas has negotiated a US$125
million facility, which will enable the company to make a further
distribution to shareholders in due course. Upon finalisation of all the
associated documentation and the satisfaction of conditions precedent,
shareholders will be advised of full details.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in their shares until a more detailed announcement is made.
Johannesburg
5 November 2001
Sponsor:
Investec Bank Limited
(Registration number 1969/004763/06)
For further details please contact Brett Kebble
on +27 11 688-5074 or +27 (0) 83-633-1803
Western Areas To Retain South Deep Stake, Make Further Pay-Out To
Shareholders
Johannesburg, 4 November - Western Areas has announced that it is to retain
its 50% interest in the South Deep project and has raised US$125 million to
make a further distribution to shareholders.
The R5 billion South Deep project, designed to exploit the world's single
largest gold reserve, is now less than two years away from full
commissioning. Upon completion it will be a major low-cost, long-life
producer with an annual gold output of some 700 000 ounces.
Western Areas chief executive Brett Kebble said today the company had
carefully considered two options for releasing value to shareholders. One
was the outright sale of its interest in South Deep and the other was the
leveraging of the asset in support of a cash distribution.
"We received a number of approaches from prospective buyers but it was clear
that their offers were coloured by the pre-emptive right of our joint
venture partner Placer Dome. Placer Dome also made a bid that apparently
assumed we were under pressure to sell. In these circumstances, we have
decided to retain this great asset. The proposed cash distribution will
significantly enhance our return on equity, which is Western Areas' primary
objective," Kebble said.
Full details of the distribution will be made known once all formalities
have been completed.
Issued by du Plessis Associates on behalf of Western Areas Limited. dPA
contact Kathy du Plessis on Tel : +27 11 728 4701, cell : +27 (0) 83 266
5847 or e-mail: westernareas@dpa.co.za
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