SOUTHERN MINING CORPORATION LIMITED - ANNOUNCEMENT AND CAUTIONARY ANNOUNCEMENT
Southern Mining Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/014149/06)
Share code: SMC
ISIN: ZAE000029799
("SMC" or "the Company")
ANNOUNCEMENT AND CAUTIONARY ANNOUNCEMENT
As announced on SENS on 19 December 2003, WMC Resources Ltd ("WMCR") issued to
Yangara Investments Ltd ("Yangara"), a wholly owned subsidiary of SMC, 6 715 123
shares in WMCR on Monday, 22 December 2003 as the second and final payment for
its purchase of Corridor Sands from Yangara.
Yangara has now disposed of these shares for a net consideration of US$28.2
million (R203 million at R7.20/$). On the liquidation of Yangara this amount
will be paid to SMC as a liquidation dividend.
SMC has now completed its program to dispose of all its assets and settle all
its liabilities and thus liquidation accounts will be prepared at 31 January
2004 and submitted to the Master of the High Court for approval of the Final
Liquidation Accounts and concomitant liquidation dividend. The date of payment
of this dividend will depend upon this process, which will include final
assessments from the South African Revenue Services, but is estimated as April
2004.
Cash on hand, together with the liquidation dividend received by SMC from
Yangara, and adjusting for tax estimates prepared by SMC and its professional
advisers, is expected to result in a final dividend marginally above US$ 30c per
share or R2.17 per share at R7.20/$. To date, this amount has not as yet been
reported on by SMC"s advisers and accordingly, shareholders are advised to
exercise caution when dealing in their SMC shares until a further announcement
is made.
In terms of the JSE Securities Exchange requirements, the ordinary shares of SMC
will continue to be listed until the final liquidation dividend has been paid to
shareholders.
A circular to shareholders detailing the abovementioned process together with
abridged financial statements for the year ended 31 January 2004 will be mailed
to all shareholders, published over SENS and will appear on the company"s
website in due course.
Johannesburg
27 January 2004
Sponsor
HSBC
Date: 28/01/2004 07:41:02 AM Supplied by www.sharenet.co.za
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