| Tue 8 Nov 2005, 7:14 | | ARM - Filing of final Prospectus for Initial Publi |
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ARM - Filing of final Prospectus for Initial Public Offering and announcement of
TSX listing date of Non-South African Exploration Assets held through TEAL
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")
FILING OF FINAL PROSPECTUS FOR INITIAL PUBLIC OFFERING AND ANNOUNCEMENT OF TSX
LISTING DATE OF NON-SOUTH AFRICAN EXPLORATION ASSETS HELD THROUGH TEAL
Johannesburg, 7 November 2005 - African Rainbow Minerals Limited ("ARM") (JSE:
ARI) today announced that TEAL Exploration & Mining Incorporated ("TEAL") has
filed a final prospectus with the securities regulatory authorities in each of
the provinces and territories of Canada in connection with TEAL"s initial public
offering of 17.8 million common shares at a price of C$2.25 per share.
The size of TEAL"s offering is approximately C$40 million. Closing of the
offering is anticipated to occur on November 15, 2005. RBC Capital Markets was
the sole bookrunner and co-lead manager, and Haywood Securities was co-lead
manager, to the offering.
TEAL has granted to the underwriters an over allotment option to purchase up to
2.67 million additional common shares at C$2.25 per share, which is exercisable,
in whole or in part, until 30 days after the closing of the offering. The
Toronto Stock Exchange has conditionally approved the listing of TEAL common
shares under the trading symbol "TL".
Prior to the closing of the offering, TEAL will acquire all of the non-South
African mineral development and exploration portfolio of ARM, which will hold 35
million common shares in TEAL and will be a 66% shareholder on listing.
Andre Wilkens, CEO of ARM commented: "We are very pleased with the acceptances
and support received from global institutions. ARM is excited about this
significant step in its African growth strategy."
"The 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," commented Rick Menell, President and Chief
Executive of TEAL.
The Executive Chairman of ARM, 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.
TEAL is a mineral development and exploration company. TEAL is currently
focused on its properties located in Zambia, Namibia and the Democratic Republic
of Congo, and continues to seek other opportunities, mainly in southern and
central Africa. Management has targeted four specific projects, the Konkola
North, Mwambashi and Kalumines copper projects, as well as the Otjikoto gold
project, each of which is being progressed towards feasibility and development
decisions. ENDS
A copy of TEAL"s final prospectus will available at www.sedar.com
FURTHER NOTES:
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.
For all investor relations" queries, please contact:
Pieter Rorich
Office: +27 11 779 1300
Mobile: +27(0)82 570 5064
E-mail: pieter.rorich@arm.co.za
or
Corne Bobbert
Office: +27 11 779 1478
Mobile: +27(0)83 380 6614
E-mail: corne.bobbert@arm.co.za
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Forward-Looking Information: Statements contained in this news release that are
not historical facts are forward-looking statements that involve risks,
uncertainties and other factors that could cause actual results, performance,
prospects and opportunities to differ materially from those expressed or implied
by such forward-looking statements. Although TEAL believes that the assumptions
inherent in the forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date of this press
release. TEAL disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, which may be made in a province or territory of
Canada only after the time a receipt for the final prospectus or other
authorization is obtained from the applicable provincial or territorial
securities regulatory authority, nor shall there be any sale or any acceptance
of an offer to buy the common shares in any state, province or other
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under securities laws of any such state,
province or other jurisdiction. The common shares of TEAL have not been, and
will not be registered under the U.S. Securities Act of 1933, as amended, and
may not be offered, sold or delivered in the United States absent registration
or an application for exemption from the registration requirements of U.S.
securities laws.
Date: 08/11/2005 07:14:09 AM Produced by the JSE SENS Department
