| Thu 1 Dec 2005, 8:00 | | Petmin - Acquisition |
|
Petmin - Acquisition
Petra Mining Limited
(Incorporated in the Republic of South Africa)
Registration number 1972/001062/06
Share code: PET & ISIN: ZAE000010237
("Petmin" or "the company" or "the group")
Shareholders approve the acquisition of Springlake Holdings (Proprietary)
Limited
Development of Somkhele anthracite project approved
New directors appointed; changes to board made; executive committee
constituted
Anchor BEE shareholding established
Shareholders approve the acquisition of Springlake Holdings (Proprietary)
Limited
The directors of Petmin are pleased to announce that 84% of shareholders were
present in person or by proxy at the general meeting held on 30 November 2005
to approve the Springlake Holdings (Proprietary) Limited ("Springlake")
acquisition. Of those shareholders eligible to vote, 99,9% voted in favour of
the resolution to approve the acquisition and all the other resolutions tabled
at the general meeting.
Development of Somkhele anthracite project approved
The directors have approved the development of the Somkhele anthracite project
("Somkhele") - an asset acquired as part of the Springlake transaction.
Springlake also comprises:
Springlake Colliery near Dundee in KwaZulu Natal, South Africa"s largest
anthracite producer at 1.1 million run-of-mine tones per annum (ROM tpa);
and
via a joint venture with BEE company Motjoli Resources (Proprietary)
Limited, a 50% interest in the Baobab Tenements, a greenfields soft coking
and steam coal deposit in the Soutpansberg coalfields.
Somkhele, near Mtubatuba and Richards Bay in KwaZulu Natal, will cost R114
million to develop and at full production in 2010 is expected to produce 950 000
ROM tpa of high quality anthracite.
First production, at an initial rate of 40 000 ROM tonnes per month (tpm), is
scheduled to begin during the second quarter of 2007. The operation, which will
include a washing and processing plant with a capacity of 120 000 ROM tpm, is
expected to be one of the lowest cost producers of high-quality anthracite in
South Africa and to bring much needed development to the economically
depressed area around Mtubatuba.
Somkhele will add significant value to the Petmin Group due to the high quality
of the resource - estimated at more than 80 million tonnes - and the demand for
high quality reductants in the smelting sector. In addition, it will augment
Springlake"s production through unique product blending opportunities.
New directors appointed; changes to Board made; executive committee
constituted
The directors wish to announce the following appointments and changes to the
Board:
Ms Lebo Mogotsi, previously a non-executive director, has been appointed as
the Deputy Chairperson and executive director,
Mr Alwyn Martin has been appointed a non-executive director representing
Dark Capital Investments (Proprietary) Limited; and
Mr Bradley Doig has been appointed a non-executive director representing the
New Africa Mining Fund ("NAMF").
The appointments of Ms Mogotsi and Mr Martin are further steps by Petmin to
enhance it Black Economic Empowerment ("BEE") representation at board level.
The directors have created a new executive committee to implement the
company"s strategy. The executive committee"s members are Lebo Mogotsi,
Dawie Warmenhoven, Jan du Preez, Bradley Doig and Bruce Tanner.
Anchor BEE shareholding established
In the Springlake acquisition circular to shareholders, it was disclosed that a
number of transactions would take place, pursuant to the Springlake
acquisition, in order to establish an anchor BEE shareholding in Petmin.
The Board is pleased to announce that these transactions will now be
implemented, resulting in an anchor BEE shareholding in excess of 40% of the
entire issued share capital of Petmin. Together with the holdings of other BEE
shareholders, will result in a total BEE shareholding in Petmin"s total issued
share capital in excess of 51%.
Dealings in securities
As an integral part of the Springlake acquisition, and as disclosed in the
Springlake acquisition circular, PSG Capital Limited will acquire 20 million
Petmin shares from NAMF at 60 cents per share. In addition, two of Petmin"s
directors - Lebo Mogotsi and Enrico Greyling will acquire 10 000 000 shares and
1 666 667 shares, in Petmin at 60c per share, from Dark Capital and NAMF
respectively.
Cautionary
Shareholders are referred to the cautionary announcement dated 15 November 2005
and are advised that caution is no longer required to be exercised by
shareholders when dealing in their securities.
Pretoria
01 December 2005
Sponsor:
River Sponsors (Proprietary) Limited
Date: 01/12/2005 08:00:10 AM Produced by the JSE SENS Department
