| Thu 22 Sep 2005, 16:12 | | ARM - Filing Of Preliminary Prospectus For IPO |
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ARM - Filing Of Preliminary Prospectus For Initial Public Offering And TSX
Listing Of Non-South African Exploration Assets
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI LSE Share code: AGM
ISIN: ZAE000054045
(`ARM` or the `Company`)
NOT FOR DISSEMINATION IN THE UNITED STATES OR CANADA
FILING OF PRELIMINARY PROSPECTUS FOR INITIAL PUBLIC OFFERING AND TSX LISTING OF
NON-SOUTH AFRICAN EXPLORATION ASSETS
This announcement appears as a matter of record only
African Rainbow Minerals Limited (`ARM`) has announced that a preliminary
prospectus has been filed with the Ontario Securities Commission (Canada) for
the initial public offering (`IPO`) of its development and exploration assets in
Namibia, Zambia and the Democratic Republic of Congo.
The non-South African assets of ARM will be transferred to TEAL Exploration &
Mining Incorporated (`TEAL`), a newly formed Canadian subsidiary of ARM. TEAL
will seek to have its securities listed on the Toronto Stock Exchange (`TSX`),
subsequent to the completion of the IPO.
ARM cautions that the IPO and TSX listing are conditional upon the approval of
various matters by regulatory authorities in Canada, including the approval by
the TSX and the acceptance of a final prospectus by the Ontario Securities
Commission.
Andre Wilkens, ARM`s Chief Executive Officer, said, `TEAL presents part of the
very exciting growth ARM will deliver through its unique positioning and already
established credibility in Africa. We will maintain a controlling interest in
TEAL post the IPO in order to fully participate in the growth potential of this
asset and to meet a condition stipulated in the exchange control approval
received from the South African Reserve Bank`.
TEAL intends to seek a secondary listing on the JSE Limited shortly after the
IPO.
The final pricing of the IPO is scheduled for late October 2005. RBC Capital
Markets is acting as sole bookrunner and as co-lead manager with Haywood
Securities.
Rick Menell will be appointed TEAL`s President and Chief Executive Officer.
Menell commented, `TEAL will have an experienced management team that is capable
of advancing each of our projects and exploration assets through clearly defined
and articulated milestones. We are excited about the potential for short and
medium-term production, assuming our exploration work and feasibility studies
prove positive.`
Wilkens added: `Having operated in Zambia and Namibia for over a decade, TEAL
can now build on its relationships with the respective governments and service
providers`.
ARM`s Chairman, Patrice Motsepe, has been appointed Chairman of TEAL. Other ARM
directors who will serve on the TEAL board are former President of Mozambique
Joaquim Chissano, Michael King, Andre Wilkens and Frank Abbott.
Proceeds from the IPO will be used to advance four mineral projects through
feasibility, and towards development, as well as exploration work to be
performed on other high-priority targets.
TEAL`s assets will include four near to medium-term development projects that it
intends to progress simultaneously with the goal of achieving production in
order to generate cash flow to support exploration and further development.
Konkola North Copper Project - TEAL currently 100%
Located within the greater Konkola area of the Zambian Copperbelt, Konkola North
has an identified inferred mineral resource of 78.8 million tonnes at a grade of
2.14% copper. This defined resource is contained within only the east and south
limb areas of the project. Historic records and more recently drilled results
relating to other areas of Konkola North indicate a further inferred mineral
resource of approximately 107 million tonnes at grades of 2.30% and 63 million
tonnes at grades of 3.88% copper. At the south limb, TEAL intends to focus
initially on the development of a high-grade region of this vast deposit by re-
equipping the existing infrastructure, which includes a 423 metre vertical
shaft, two ventilation shafts and three ore haulage levels. Konkola North is
subject to a buy-in right of up to 20% (with a 5% carried interest) by ZCCM
Investment Holdings plc, a company controlled by the Zambian Government.
Mwambashi Copper Project - TEAL 70%
Mwambashi is located on the Zambian Copperbelt and is held within TEAL`s
Copperbelt Joint Venture Exploration Area, a joint venture with Korea Zinc
Company, Limited. This project represents TEAL`s nearest-to-production prospect.
An indicated mineral resource of approximately 8.6 million tonnes at 2.43%
copper and 0.07% cobalt has been identified. TEAL is currently undertaking a
feasibility study that it expects to finalize within six months. Following a
positive outcome, TEAL could pursue open pit development with low capital
requirements due to the likely availability of nearby processing facilities.
Otjikoto Gold Project and Otavi Exploration Area - TEAL 100%
Otjikoto is located within the Otavi Exploration Area in north-central Namibia
where TEAL made a new discovery of vein-hosted gold mineralization. TEAL has
undertaken resource estimation work at Otjikoto and an inferred mineral resource
of approximately 870,000 ounces of gold has been defined to date at a grade of
1.06g/t. TEAL`s management believes the resource is open-ended and has the
potential for the delineation of further resources. TEAL hopes to expand and
upgrade the current resource base through further drilling and expects to
undertake a feasibility study within 36 months.
Kalumines Copper-Cobalt Project - TEAL 60%
Situated in the Democratic Republic of Congo, in close proximity to Lubumbashi,
Kalumines is a joint venture with La Generale des Carrieres et des Mines
(`Gecamines`). The project area hosts four near surface areas of copper
mineralization that TEAL believes may be exploitable using open-pit mining
techniques. Previous owners undertook drilling, trenching and pitting and copper
and cobalt mineralization was identified over a strike length of 3 kilometers.
TEAL has agreed with Gecamines to complete a feasibility study on the project by
May 2007. Two primary areas of interest within the Kalumines area, Lupoto and
Kasonta, contain historical inferred mineral resources of 6.7 million tonnes and
1.5 million tonnes, respectively. Lupoto contains grades of approximately 3.13%
copper, while Kasonta is grading 5.18% copper.
ENDS
Additional ARM information may be found at www.arm.co.za
A copy of TEAL`s preliminary prospectus is available at www.sedar.com but has
not yet become final for the purpose of a distribution to the public.
For further details please contact:
Pieter Rorich
Office: +27 11 779 1300
Mobile: +27(0)82 570 5064
E-mail: pieter.rorich@arm.co.za
or
Rick Menell
Office:+27 11 779 1300
Mobile: +27(0)82 450 2301
E-mail: rick.menell@arm.co.za
Johannesburg
22 September 2005
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 22/09/2005 03:36:53 PM
Produced by the JSE SENS Department
