SOUTHERN MINING CORPORATION LIMITED - FURTHER CAUTIONARY ANNOUNCEMENT
SOUTHERN MINING CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1996/014149/06)
JSE Code SMC
ISIN ZAE000029799
("Southern Mining" or "the Company")
Further to the cautionary announcement published by Southern Mining on 7
November 2002, Southern Mining wishes to announce that it is in negotiations
with WMC Limited ("WMC") with respect to the acquisition by WMC of all of
Southern Mining`s interests in the Corridor Sands Project.
An extraordinary meeting of the shareholders of WMC was held today in Melbourne,
Australia to vote on WMC`s proposed Scheme of Arrangement. Southern Mining
shareholders are advised that the WMC Chairman`s address included the following
statement:
"The Scheme booklet discloses details of the option held in respect of the
Corridor Sands mineral sands project. I wish to advise that we have entered into
discussions with Southern Mining Corporation with a view to purchasing their
interest in the project. Negotiations are not final and we cannot at this stage
be definitive either about details of the proposed transaction or indeed whether
negotiations will be successful. However, I do wish to advise that in the event
of successful negotiation, part consideration for the purchase would be by way
of issue of WMC Ltd shares, in an amount of between 1% and 1.5% of issued share
capital."
For information, the part consideration for the purchase price for the Corridor
Sands Project, of between 1% and 1.5% of WMC`s issued shares, amounts, at the
latest closing price of a WMC share, to an amount of between US$51 million and
US$77 million.
Southern Mining shareholders are cautioned that there is no guarantee that the
negotiations will be successful, and are advised to continue to exercise caution
when dealing in the Company`s shares until a further announcement is made.
Johannesburg
29 November 2002
Sponsor
HSBC Investment Services (Africa) (Pty) Ltd
Date: 29/11/2002 07:00:03 AM Produced by the JSE SENS Department
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