MVELAPHANDA RESOURCES LIMITED - PRESS RELEASE REGARDING THE ACQUISITION OF
CERTAIN RIGHTS FROM MVELA HOLDINGS LIMITED
Mvelaphanda Resources Limited
(Registration number 1980/01395/06)
(Incorporated in the Republic of South Africa)
Share code: MVL
ISIN number: ZAE000050266
("Mvela Resources")
PRESS RELEASE REGARDING THE ACQUISITION OF CERTAIN RIGHTS FROM MVELA HOLDINGS
LIMITED
Mvelaphanda Resources yesterday announced that it intends to acquire certain
current and future rights from Mvelaphanda Holdings Limited ("Mvela Holdings").
These rights, which were granted by agreement when Mvela Resources was formed,
permitted Mvela Holdings a participation right in business opportunities offered
to Mvela Resources by Mvela Holdings. In return for selling these rights, Mvela
Resources will issue 2.55 million ordinary shares to Mvela Holdings.
This announcement follows hard on the heels of the detailed terms of Mvela
Resources" acquisition of 15% of Gold Fields" South African gold mining assets
announced by Mvela Resources and Gold Fields yesterday, said Bernard van Rooyen,
independent director of Mvela Resources, "The participation rights of Mvela
Holdings have been in place since Mvela Resources was originally listed. Given
the growth of the group and its expected future prospects, we were advised that
these participation rights could become complex and confusing to shareholders.
It had been the intention of the Mvela Resources Board to remove this structure,
but the Gold Fields and Khumama platinum transactions were the catalysts for
this."
Mark Willcox, CEO of Mvela Holdings said, "When it was recommended to us by our
advisers that simplification of these participation rights would be beneficial
to Mvela Resources going forward, Mvela Holdings as a material shareholder in
Mvela Resources agreed to this advice, although we are selling a right we
believe to have significant value."
An Independent Committee of the Mvela Resources Board appointed
PricewaterhouseCoopers Corporate Finance to express a fair and reasonable
opinion to ensure that the transaction was done at arm"s length.
As part of the agreement, Mvela Holdings is now legally committed to offer to
Mvela Resources without compensation any opportunities it receives in the mining
sector (excluding mining projects relating to energy) for the next three years.
Date: 28/11/2003 01:59:02 PM Produced by the JSE SENS Department
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