Aflease Gold And Uranium Raises Over $20m In Private Placement
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 & JSE Share Code: AFL
(`Aflease`)
AFLEASE GOLD AND URANIUM RAISES OVER $20M IN PRIVATE PLACEMENT
August 2, 2005, JOHANNESBURG, SOUTH AFRICA -- Aflease Gold and Uranium Resources
(`Aflease`) is pleased to announce the completion today of a private placement
of 32 000 000 ordinary shares at a price of ZAR 4.25 (US$0.64) per share, for a
total value of ZAR 136 000 000 (US$20.5m).
The 32 000 000 new Aflease shares which were placed are equivalent to 9.3% of
the total issued share capital of Aflease prior to the issue of 32 000 000 new
ordinary shares.
The private placement was achieved alongside a secondary offer of 20 500 000
Afease ordinary shares by Jipangu Inc, representing approximately 5,9% of the
total issued capital, prior to the issue of the 32 000 000 new ordinary shares
worth a further $13.1m.
The private placement and the secondary offering were completed through a
syndicate of agents, led by BMO Nesbitt Burns Inc. Other members of the
syndicate included Sprott Securities Inc., Barnard Jacobs Mellet (US) LLC,
Hargreave Hale Limited and Toll Cross Securities Inc.
The company plans to use the net proceeds of the private placement for the
ongoing development of its Dominion uranium property, and for general corporate
and development purposes.
The capital raising was contemplated in last month`s announcement of a pre-
merger agreement between Aflease and Southern Cross Resources Inc (SXR) of
Canada.
This announcement is not an offer of securities for sale in the United States.
No shares may be offered or sold in the United States absent registration or an
exemption from registration, and any public offering of shares to be made in the
United States will be made by means of a prospectus that may be obtained from
the Company which will contain detailed information about the Company and its
management, as well as financial statements.
Said Aflease CE Neal Froneman: `We are very pleased at the successful completion
of this transaction.
`We see it as a strong endorsement of our corporate vision and strategy, as well
as our previously announced combination with TSX-listed Southern Cross Resources
(SXR).
`We appreciate the continued support of our existing shareholders, and the new
shareholders on this placement, as we grow our business.
`The funds raised will keep the development on the Dominion uranium project on
track with our promised schedule while we complete our merger with SXR.`
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
For further information, please contact:
Neal Froneman: +27 83 628 0226
John Fraser: +27 82 331 7330
Carol Smith: +27 82 338 2228
Date: 03/08/2005 10:31:05 AM
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