| Tue 17 Dec 2002, 15:06 | | Sub Nigel - Acquisition Of Mining Claims And Minin |
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Sub Nigel - Acquisition Of Mining Claims And Mining Lease
SUB NIGEL GOLD MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1984/006179/06)
Share code: SBN
ISIN: ZAE 000017539
("Sub Nigel" or "the company")
ACQUISITION OF MINING CLAIMS AND MINING LEASE
Further to the cautionary announcement dated 18th November 2002, shareholders
are advised that an agreement has been concluded with Gold Fields Limited
("GFL") for the acquisition of the following mining claims and mining lease
("the acquisition"):
3011 precious metal claims situate upon the farm Vlakfontein 161, registration
division I.R., Gauteng Region and Province.
1434 precious metal claims situate upon the farm Spaarwater 171, registration
division I.R., Gauteng Region and Province.
3542 precious metal claims situate upon the farms Spaarwater 171, Droogebult 170
and Noycedale 191, registration division I.R., Gauteng Region and Province.
Mining Lease No.1/73 situate on the farm Spaarwater 171, registration division
I.R., Gauteng Region and Province.
The acquisition of these mining rights, which are contiguous with the western
boundary of the mine, will increase the mine`s potential resource area by
roughly 400% to a total area of approximately 10000 claims. The area is
underlain by the Nigel Reef (Main Reef Leader), the Kimberley Reefs (May Reef)
and other associated reefs. It is intended to commence with shallow surface
drilling exploration operations early next year.
In terms of the acquisition, Sub Nigel will issue 5 000 000 (five million) new
ordinary shares in Sub Nigel at 14 cents per share to GFL. This represents
9,875% of the company`s total issued share capital of 50 631 492 shares,
calculated after taking this issue into account.
PRO FORMA FINANCIAL EFFECTS
The table below sets out the pro forma financial effects of the acquisition,
based on the audited financial statements of Sub Nigel for the year ended 30
June 2002. This is provided for illustrative purposes only and because of its
historical nature, may not be a true reflection into the future.
Before After % change
Loss and headline loss per share (cents) 0,84 0,75 (10,7%)
Tangible Net asset value per share (cents) 61,6 56,9 (7,6%)
Number of shares in issue (`000) 44 632 49 632
Notes:
For purposes of calculating the loss and headline loss per share it was assumed
that the acquisition was effected 1 July 2001.
For purposes of calculating the net asset value per share it was assumed that
the acquisition was effected 30 June 2002.
Further to the above and in terms of an agreement entered into with Zarara
Energy Limited ("Zarara")(formerly Gold Fields Property Limited) dated October
2002, certain rights retained by Zarara in the original purchase agreement
between Sub Nigel and Zarara dated 1984, have been cancelled.
In return for the cancellation of these rights held by Zarara, Sub Nigel has
issued 1 000 000 (one million) new ordinary shares in the company to Zarara.
As a result of the above two agreements and in order to consolidate and increase
the potential resource for future exploitation and development, the issued share
capital of Sub Nigel has therefore been increased to 50 631 492 shares from 44
631 492 shares.
The mining rights held by Sub Nigel on the farms Varkensfontein 169 I.R. and
Grootfontein 165 I.R., together with the above acquired mining rights, are
currently the subject of an application for a mining authorisation submitted to
the Department of Minerals and Energy, in terms of section 9 of the Minerals
Act, 50 of 1991.
Consequently, the advice of the board of directors of Sub Nigel to shareholders
to exercise caution while dealing in their shares in the company is withdrawn.
Cape Town
17 December 2002
Sponsor:
Sasfin Bank Limited
Date: 17/12/2002 02:28:00 PM Produced by the JSE SENS Department
