THE AFRIKANDER LEASE - PRESS RELEASE
The Afrikander Lease
(Incorporated in the Republic of South Africa)
(Registration Number 1992/005642/06)
Share code: RNG ISIN: ZAE000008819
Nasdaq trading symbol: RANGY
(`Randgold`)
PRESS RELEASE
30th July 2004
AFLEASE ANNOUNCES R125 MILLION SHARE SWAP TRANSACTION WITH RANDGOLD AND SECURES
A R50 MILLION FACILITY FOR THE DEVELOPMENT OF ITS URANIUM AND GOLD ASSETS
The Afrikander Lease Limited (`Aflease`) today announced that it had reached
agreement with Randgold and Exploration Company Limited (`Randgold`) on a R125
million share swap transaction on a ratio of 1 Randgold share to 10 Aflease
shares, which will result in Aflease owning 12.5% of Randgold, and Randgold
increasing its stake in Aflease to approximately 33%.
Aflease CEO, Neal Froneman, commented that the changing market conditions,
principally driven by the strengthening rand, had resulted in management having
to re-negotiate terms for future funding. He stated that the share swap
transaction effectively replaces funding arrangements announced on 12th February
2004 and referred to in his letters to shareholders on 8th April 2004 as well as
in the group`s Annual Report, whereby Randgold would subscribe to shares and
underwrite a rights offer.
The group also announced that it had secured a further R20 million of funding
from Randgold to support on-going operational development, increasing previously
arranged funding facilities with Randgold from R30 million to R50 million.
Randgold will have the choice to convert the R50 million loan into shares, on
the last day of the 12 month period ending after closure of the transaction, in
one of two ways. Option one will be by the issue of the requisite number of new
shares at R2,75 per share, plus a 3 year option per share priced at R3,50.
Option two will be by the issue of the requisite number of shares at 10% below
the 30 day weighted average as at the repayment date.
Commenting on the announcement, Neal Froneman, Aflease CEO, said: `This new deal
successfully secures funding that Aflease needs to apply to its mining
development programme. In particular, it will allow Aflease to kick start its
Uranium business with a pre-feasibility study, and take Modder East further up
the value curve through the completion of a bankable document. We will also
complete the development of the Bonanza South project near Klerksdorp and retire
the group`s long term debt.`
Brett Kebble, CEO of Randgold commented: `This is a good deal for Randgold and
for Aflease. We are excited about the medium to long term potential for the
high quality assets which are part of the Aflease stable. We are confident that
management have the right strategy in place to deliver for all shareholders.`
A circular will be issued to shareholders in due course.
-ends-
Issued by Brunswick 011 268 5750
Contact:
Neal Froneman, Aflease 083 628 0226/011 482 3605
Brett Kebble, Randgold 083 633 1803
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