Western Areas Limited - Secures Short Term Banking
WAR
WARA
Western Areas Limited - Secures Short Term Banking Facility
WESTERN AREAS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1959/003209/06)
Share code: WAR & ISIN No: ZAE000016549
ADR Ticker symbol: WARUY
CUSIP No: 957654304
("Western Areas" or "the Company")
WESTERN AREAS SECURES SHORT TERM BANKING FACILITY
Western Areas announced today that it had secured a short term banking facility
agreement with The Standard Bank of South Africa ("the facility") for the period
through to January 2007. The facility has been arranged such that the Company
can:
- Meet its obligations in respect of any cash calls in terms of the Joint
Venture Agreement with Barrick Gold South Africa (Pty) Limited;
- Fund its obligations in terms of the payment of the deferred premium
pertaining to the Company"s derivative structure;
- Comply with its obligations under and in terms of the derivative structure;
- Fund any general operational and administrative expenses incurred by the
Company in the day to day conduct of its business.
The facility has been arranged following the Twin Shaft Incident ("the
Incident") on 04 May 2006, which has resulted in the mine"s underground ore flow
having to be redirected through the South Shaft Complex, with a consequential
reduction in throughput to an estimated 80 000 tpm (which excludes the planned
30 000 tpm from a surface low-grade waste dump).
Mine and contract personnel have continued to perform above expectations as
regards the rehabilitation of the Main Shaft of the Twin Shaft Complex, with the
re-commissioning of the Shaft being expected in early 2007 at a cost of some R80
million.
Investigations into the cause of the Incident are still underway, and a final
report is expected in due course. Considerable work continues as regards the
insurance process to determine the nature and extent of a potential claim under
the policy, and every effort is being made to finalise the matter expeditiously.
Johannesburg
4 July 2006
E-mail: info@wal.co.za
Date: 04/07/2006 11:02:05 AM Produced by the JSE SENS Department
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