Further Announcement Regarding The Disposal Of The
Mining Operations And The Share Premium Distribution
President Steyn Gold Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/014461/06)
Share code : PGD
ISIN code : ZAE000026654
("PSGM")
FURTHER ANNOUNCEMENT REGARDING THE DISPOSAL OF THE PRESIDENT STEYN GOLD
MINING OPERATIONS AND THE SHARE PREMIUM DISTRIBUTION
In the announcement published on Thursday, 31January 2002, it was announced
that the transaction whereby PSGM will dispose of its gold mining
operations, including the TM Training Initiative, to Thistle Mining
Incorporated ("Thistle"), has become unconditional and payment was due on
the effective date, Friday, 1 February 2002.
Thistle has failed to make payment of the purchase consideration on the
effective date to PSGM, whilst PSGM has been in a position to fulfil its
obligations in terms of the sale of shares and claims agreement dated 30
November 2001 ("the agreement"), namely to deliver certain documents of
title to Thistle.
Thistle, supported by letters from its financiers, gave PSGM the assurance
that they and their respective advisors are working diligently to close the
financing as soon as possible or practicable and that based upon the
significant amount of work already undertaken nothing has come to light that
would constitute a material obstacle to closing the financing.
In terms of the agreement, PSGM has on Monday, 4 February 2002 issued a
default notice to Thistle, notifying them that they are in material breach
of the agreement, and if they fail to remedy such breach within 14 calendar
days after receipt of such notice, PSGM will claim such damages as it may
suffer, and exercise such further rights granted to PSGM in terms of the
agreement and in law.
Once the purchase consideration has been received, a further announcement
containing final dates regarding the share premium distribution will be
made. Alternatively should payment not be forthcoming within the 14 day
period, shareholders will be advised as to the action the board of PSGM has
elected.
Johannesburg
5 February 2002
Corporate adviser
Argil Corporate Finance
Reporting accountants
JCB Incorporated
Attorneys to PSGM
Hofmeyr, Herbstein & Gihwala
Sponsor
BoE Securities
Independent adviser
BoE Merchant Bank
Attorneys to Thistle
Werksmans
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