| Wed 8 Jun 2005, 14:01 | | Aflease signs milestone BEE deal |
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Aflease signs milestone BEE deal
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 Gold and Uranium Resources is pleased to announce the signing of a
milestone black economic empowerment (BEE) deal with a broad based consortium,
with major benefits going to both workers and communities
Under the accord, which will be effective from 30th September this year, the
empowerment partners will acquire 26% of Aflease`s current exploration and
mining activities and prospecting areas in the Klerksdorp region, while also
taking responsibility for 26% of the company`s commitments in respect thereof.
The deal is being financed by Aflease, and the purchase will take place in
stages, with the empowerment consortium paying market-related prices.
`I am delighted that we have come so far so fast,` says Aflease CE Neal
Froneman.
`Once this deal comes into effect, we will be compliant on our largest assets
with the equity provisions of the Mining Charter, and we have done this in just
over a year from the Charter`s implementation.
`However, this is not the end of our commitment to making Aflease an empowerment
player in the full sense.
`We are the only listed South African mining company to have a black chairwoman,
in Thuthukile Skweyiya, and we are well ahead of target in recruiting able and
talented black South Africans to our board and our management team.`
The company housing the BEE consortium has been provisionally named Micawber
397, but is due to change its name once it is up and running.
It will be 30% owned by black Aflease workers, and 30% by a community trust.
Sandile Zungu`s Africa Vanguard Resources will hold 20%, with five percent
stakes each going to Indalo Investment Holdings, Emseni Investments, Umlilo
Mining and Finance and Magumo Investments.
`The exact proportions have changed slightly since we first announced our BEE
deal in February, but all of us are still committed to this deal, and I am
delighted with the structure of the empowerment grouping,` says Froneman.
Froneman continued: `It meets our requirements for genuine empowerment, and not
mere enrichment, and has also won government approval.
With this powerful and proud partnership in place, I am confident that we will
be well placed to secure not only the conversion of our existing mineral rights,
but also to secure compliance for any new assets which we may acquire in the
future, as we continue to grow our company and return to do what we do best -
mining!
Aflease is about to resume active mining at our Bonanza gold mine near
Klerksdorp, and is also fast-tracking plans to start a uranium mine right next
door, early in 2007.
We will be ensuring that our new empowerment partners are with us as we
selectively grow Micawber 397, and we and they start to reap the rewards from
the turnaround strategy which we have in place for Aflease.`
Aflease finance director Jean Nortier says that a `very imaginative financing
structure` was needed to underpin the BEE deal, with Aflease itself funding the
empowerment holding.
This loan is to be repaid from the future profits which accrue to the
empowerment partners.
`We are still returning to active mining, so don`t have revenue streams to fund
the transaction at this stage,` explains Nortier.
`Our BEE partners will pay for their stake in the company in stages, with the
first payment of at least 20% of the total being due within three years of
receipt of the first dividend distribution, and subsequent payments of at least
20% in each following three-year period.
`The empowerment partners are excited to be involved in this transaction, which
is good for empowerment in general and definitely good for Aflease and for South
Africa,` said Zungu.
`It shows that this company is ahead of the pack in embracing the need to uplift
ordinary South Africans.
Aflease is going to go places.
Aflease has both gold and uranium resources in SA, and is planning an
international capital raising later this year.
The company is then expected to be divided into a focused gold vehicle and a
separately-listed uranium-driven resources entity.
We intend to grow Aflease both organically and by acquisition, and will be now
able to do so as a mining company which is meeting the requirements of the
Mining Charter, for the benefit of both our existing shareholders and our new
empowerment partners,` says Froneman.
`Aflease is actively working to ensure it meets every aspect of the Charter, and
not just the 26% equity requirement.
From procurement to skills development, we are working hard to ensure that
Aflease plays its part in the economic success and the transformation of South
Africa. We have already very successfully employed one of the members of Magumo
as part of our empowerment drive.`
Some more details on the empowerment partners are as follows:
Africa Vanguard Resources (`AVR`) will have 20% and will assume the leadership
role of the group. AVR is a respected and well known BEE group. AVR is headed
up by Mr Sandile Zungu.
Indalo Investment Holdings is a women`s grouping which will have 5%. Indalo is
represented by Ms Thandi Marah and Ms Thembi Tulwana.
Umlilo Mining and Finance is another women`s grouping that has joined the
Aflease initiative and is headed up by Ms Bonnie Swana. Bonnie`s company is
also one of the controlling shareholders of Kabusha Mining and Finance, a
company that currently holds 3% of Aflease`s shares on the JSE. Umlilo also has
5%.
Emseni Investments is a company headed up by Dr Keith Shongwe. Dr Shongwe, his
medical colleagues and their company are intimately involved in the communities
and the health industry. Emseni Investments has 5%.
Magumo Investments is a company that is controlled and majority owned by PDSA
individuals. These individuals are very strongly skilled in the corporate
finance world and will greatly assist the BEE company to achieve its financing
needs. Magumo also has 5%.
Contact: Neal Froneman 083 628 0226
Carol Smith 082 338 2228
Sandile Zungu 083 269 0657
Date: 08/06/2005 01:10:07 PM Supplied by www.sharenet.co.za artment
