SALLIES PRODUCTION EXPANSION TO PROCEED AFTER RIGH
SALLIES LIMITED - SALLIES PRODUCTION EXPANSION TO PROCEED AFTER RIGHTS OFFER
SALLIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1903/001879/06)
JSE share code: SAL
ISIN: ZAE000022588
SALLIES PRODUCTION EXPANSION TO PROCEED AFTER RIGHTS OFFER
Johannesburg, 26 January 2004 - Fluorspar miner Sallies said today it would
proceed with the proposed expansion of production capacity at its Witkop plant
on the basis of its just-completed rights offer.
Provisional results of the offer, which was not underwritten, indicate that some
48 million shares with a value of R10.5 million were applied for. The company
will now proceed with the next phase of its capital raising exercise which is to
place the balance of some 90 million shares through a book-building exercise.
"Considering that our major shareholder RMB Australia did not follow its rights,
electing instead to extend its loan to the company, the results of the offer are
in line with our expectations," said Sallies director Alastair Moffat.
"The proceeds of the offer will be sufficient for us to achieve our principal
objective, which is to eliminate the production bottleneck at Witkop by
increasing the plant"s milling capacity by 50%. The book-building exercise
which will now commence will, among other things, help us to bring a BEE partner
on board."
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