| Tue 22 Feb 2005, 10:23 | | Aflease announces BEE scheme |
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Aflease - Aflease Announces BEE Scheme Including Workers` Trust
Aflease Gold and Uranium Resources Limited
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
AFL(JSE)AFLUY(NASDAQ)
(Registration number 1921/006955/06)
ISIN: ZAE000061461 Share Code : AFL
(`Aflease` or `the Company`)
Aflease announces BEE scheme including workers` trust
Media Release
Johannesburg 22 February, 2005 - Aflease Gold and Uranium Resources Limited
(`Aflease`) today announced its plans for black economic empowerment (`BEE`) in
accordance with the Broad Based Socio-Economic Empowerment Charter, the `Mining
Charter`.
Aflease proposes to form a BEE joint venture (`JV`) comprising a separate
unlisted company `Micawber 397 (Pty) Ltd` of which six partners will be
shareholders. Included will be a workers` trust the Aflease Employees Trust.
The Micawber shareholders will be: Africa Vanguard Resources (`AVR`), holding a
25 percent stake; Indalo Resources, also with 25 percent; Enseni Resources with
a 15 percent interest and Umlilo Mining and Magumo Investments, each with 5
percent.
In the spirit of the Mining Charter, Aflease is committed to doing what is
required of it to assist previously disadvantaged persons and communities. It is
therefore pleasing to have Indalo Resources, which is 100 percent owned, managed
and controlled by women, within Micawber.
The remaining 25 percent of Micawber will be held by the Aflease Employees
Trust. A body of interim trustees has been appointed as `caretakers` on behalf
of the future beneficiaries. They are:
Thuthu Skweyiya - Chairperson of the board of Aflease
Christine Bannerman - Aflease Company Secretary
Basetsana Ramaboa - Aflease Group Human Resources Manager.
The interim trustees will manage the founding process and will hand over to the
new trustee body upon completion.
The shareholder base of Micawber is characterised by strong industry leaders,
broad based empowerment and the involvement of the Aflease workers.
The proposed transaction involves Micawber acquiring an undivided 26 percent
share of the mineral and mining assets of Aflease through an interest-free loan.
There is no upfront cash required. The loan will equate to the market
capitalization of Aflease on the closing date less the market value of the non-
mining assets retained by Aflease.
Micawber becomes entitled to dividends from the JV on closing and there is no
lock-up of dividends. Aflease anticipates that most of its projects will be at a
combination of bankable and implemented stage by the beginning of 2007. The JV
will therefore be in a position from as early as 2007 through 2008 to raise
finance.
Micawber will be required to make payment in cash of a minimum of 20 percent of
the loan received within three years of the date of receipt by it of the first
dividend from the JV. Thereafter Micawber will be required to pay a minimum of
20 percent every subsequent three year period.
As the scorecard requirement of the Mining Charter must be met in each annual
submission to the Department of Minerals and Energy, shareholders of the new BEE
company are restricted in selling their shares, other than to other qualifying
HDSA purchasers.
The principles applied to the scheme will ensure: No value loss to Aflease
shareholders; a sustainable BEE structure in that it is required to meet the
minimum BEE criteria every year; participation of workers - partnering with HDSA
employees; and that the structure is replicable and fail-safe to further growth
opportunities.
Aflease will endeavour to include its new partners in all future mining
projects.
Neal Froneman, chief executive officer of Aflease, said:` It has always been our
intention to be involved in black economic empowerment at the earliest
opportunity as I firmly believe that it is in the best interests of the mining
industry and South Africa as a whole.
`Our intention is to create long term partners who will stay and prosper with
Aflease for many years.
`I believe that the scheme we have proposed today may also serve as a model for
other development companies who face the same constraints as we do.`
Froneman added: `One has to understand that South Africa`s financial markets are
not always friendly towards entrepreneurial exploration and mine development
companies like ourselves. That`s why fund raising is often difficult for
Aflease, despite having exciting gold assets at Bonanza South in North West
Province and Modder East on the East Rand - not to mention our highly rated
uranium interests at Dominion and Rietkuil in the Klerksdorp area.
`I am also deeply honoured to have such a respected and responsible group of
people joining us as partners. Welcome aboard.`
For more information please contact:
Neal Froneman, CEO of Aflease:
Tel. +27 11 482 3605
Mobile +27 836280226
Carol Smith, Investor Relations:
Tel. +27 11 482 3605
Or, Andrew Davidson, Corporate Communications
Mobile +27 826677203
www.aflease.com
Certain statements in this document constitute `forward looking statements`
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the company to be materially different from the future results,
performance or achievements expressed or implied by such forward looking
statements.
Such risks, uncertainties and other important factors include among others:
economic, business and political conditions in South Africa; decreases in the
market price of gold; hazards associated with underground and surface gold
mining; labour disruptions; changes in government regulations, particularly
environmental regulations; changes in exchange rates; currency devaluations;
inflation and other macro-economic factors; and the impact of the AIDS crisis
in South Africa. These forward looking statements speak only as of the date of
this document.
The company undertakes no obligation to update publicly or release any revisions
to these forward looking statements to reflect events or circumstances after the
date of this document or to reflect the occurrence of unanticipated events.
Date: 22/02/2005 10:15:09 AM
Produced by the JSE SENS Department
