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The Afrikander Lease Limited - General Issue Of Shares For Cash
The Afrikander Lease Limited
(Incorporated in the Republic of South Africa)
AFL (JSE) AFKDY (NASDAQ)
(Registration number 1921/006955/06)
(`Aflease`)
(ISIN Number : ZAE000000253 Share Code : AFL)
GENERAL ISSUE OF SHARES FOR CASH
1. Introduction
Shareholders are advised that Aflease has concluded a number of issues of shares
for cash transactions, which were concluded in terms of the general authority to
issue shares for cash, granted by shareholders at the annual general meeting
held on 28 June 2004. In addition to the placing of 12,974,884 shares announced
on 27 October 2004, the company has placed a further 14,745,157 shares. A total
of 27 720 041 new Aflease ordinary shares of 2 cents per share (`new Aflease
shares`) have been issued at an average price of R1.74 per share, which equates
to a 0.56% discount to the weighted average traded price of Aflease shares on
the JSE Securities Exchange South Africa (`JSE`) for the 30 business days prior
to the date on which the agreements were reached. The cash issue constitutes
12.91% of the issued share capital of Aflease prior to such issue, as calculated
from 28 June 2004, the date the general authority was passed.
The new Aflease shares will rank pari passu with the existing issued shares of
Aflease. Application has been made to the JSE for the listing of the new Aflease
shares with effect from 10 December 2004.
2. Rationale
As a result of the Aflease Board approving a change in scope of the Uranium
feasibility study, the costs thereof increased from R15 million to R21 million.
The change in scope is necessary to ensure that production can commence from the
end of 2006. The final green light for the project will still be subject to a
successful outcome of the phase 1 feasibility study.
The board further approved the recommencing of exploration at Modder East, the
Bonanza Basin and at the Afrikander gold deposits at which operations were
suspended in December 2003.
To fund the increased cash flows the company has entered into a number of
private share placements.
3. Private Share Placement
Aflease is pleased to announce that it has placed shares with Sprott Asset
Management of Canada. Sprott Asset Management has acquired 3.8% of Aflease
through an investment of R21.9m (US$ 3.7m).
Earlier private share placements have also taken place in Europe and the USA.
Aflease is pleased to welcome Sprott Asset Management (Canada), RAB Capital
(United Kingdom), Midas Natural Resources (United Kingdom) and Firebird Global
Fund (USA) to our growing international shareholder base.
4. Pro forma financial effects for the quarter ended 30 June 2004
Per Aflease share Actual before Pro-forma Percentage
the cash after the change
issue(1) cash issue
(2)
Loss (7.06) (5.86) 17.01%
Headline loss (7.06) (5.86) 17.01%
NAV 51.13 65.54 28.18%
Tangible NAV 51.13 65.54 28.18%
Notes
1. The `Actual before the cash issue` column is based on the unaudited
financial results of Aflease for the six months ended 30 June 2004 as published
in the press.
2. The `Pro Forma after the cash issue` column is based on the assumption that
R48,173 million in cash in respect of the cash issue was received on 1 January
2004 and earned interest at an after tax rate of 3.88% for the six months to 30
June 2004.
3. The pro forma financial information is the responsibility of the directors
of Aflease.
Johannesburg
6 December 2004
Investment bank and sponsor
Nedbank Capital
Date: 06/12/2004 09:48:09 AM
Produced by the JSE SENS Department
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