Aflease issue of shares and cautionary announcemen
(Registration number 01/06955/06)
Share code GBL ISIN ZAE000000253
General issue of shares for cash and cautionary announcement
In terms of the general authority granted to the directors of The Afrikander
Lease Limited ("AFL") at the general meeting on 16th July 2002 to issue shares
for cash, AFL is pleased to announce the successful negotiation of an
irrevocable commitment totaling approximately R133 million, from Jipangu
Incorporated, a Tokyo based gold investment fund.
Further details of the subscription are as follows:
1. Jipangu Inc has subscribed for 20.5 million AFL shares in two 10.25 million
tranches on 31st August 2002 and on 30th September 2002 respectively.
2. The subscription price is R6.50 per share.
3. The effects of the transaction on the AFL financials for the quarter ended
March 2002 are:
a) Net asset value per share recalculated at 169.5 cps (98.0 cps in quarterly
results.)
b) Earnings per share recalculated at 4.62 cps (3.25 cps in quarterly results.)
Calculations assume that the shares were issued on 2 January 2002 and that
excess cash was invested at market related rates during the quarter.
4. Proceeds realised will be used to fund the recently announced AFL upgrade
which forms part of AFL`s strategy to produce 200,000 ozs of gold per annum.
Further information relating to Jipangu Inc.
Jipangu Incorporated, a gold focussed investment fund, is based in Tokyo, Japan
and is presently completing its listing on the Tokyo stock exchange. After
concluding a successful due diligence study on AFL, Jipangu was satisfied that
AFL fulfilled the operational, resource and reserve criteria necessary for its
investment. AFL will be the first South African gold mine to secure a direct
Japanese investment which will allow Japanese investors to have indirect access
to AFL shares on the Tokyo stock exchange.
The directors of AFL are pleased to announce the involvement of Jipangu and look
forward to raising the international profile of AFL. Shareholders will now be
able to access AFL shares on the main board of the JSE, the NASDAQ (to be
upgraded to an ADR level 2), in New York and indirectly on the Tokyo stock
exchange through Jipangu. This broadened international shareholder base should
substantially increase liquidity and demand for AFL shares.
Cautionary announcement
Shareholders are further advised that AFL has entered into negotiations, which,
if successfully concluded, may have an effect on the price at which the
company`s securities trade on the JSE Securities Exchange South Africa.
Accordingly, shareholders are advised to exercise caution when dealing in the
company`s securities until a further announcement is made.
Johannesburg
8 August 2002
Date: 08/08/2002 11:48:30 AM Produced by the JSE SENS Department
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