26th Apr 2007 07:00
AQUARIUS PLATINUM LIMITEDASX, LSE & JSE26 April 2007
Aquarius completes 3.5% purchase of South African subsidiary, following Consent from the South African Department of Minerals and Energy
Aquarius Platinum Limited is pleased to announce the completion of the acquisition of a 3.5% equity interest in Aquarius Platinum (South Africa) (Pty) Limited ("AQPSA") from the Savannah Consortium for a cash consideration of ZAR342.5 million ("Transaction") following the receipt of a Section 11 (1) Consent from the South African Department of Minerals and Energy.
Commenting on the Transaction completion, Stuart Murray, CEO of Aquarius Platinum said, "I am delighted that this Transaction has completed. This is a commercially sound transaction for both parties. It is encouraging that the Department of Minerals and Energy has approved the Transaction and thus demonstrated the value that a soundly structured BEE deal can create for all concerned."
Background to the 3.5% purchase
On 24 October 2006, AQP announced that the South African Government's Department of Minerals and Energy ("DME") had converted AQPSA's mining rights at Kroondal, Marikana and Everest.
In anticipation of conversion by AQPSA of its old-order mining and prospecting rights, AQP and SavCon agreed the partial implementation of the Final Phase to create a `win-win' for both AQP and SavCon. The Transaction will enable SavCon to lock in a significant gain, without having any adverse impact on AQPSA's new-order mining rights, on approximately 12% of its original investment in the AQP Group. The disposal proceeds will be utilised to repay a substantial portion of the third-party funding raised by SavCon for the BEE transaction, thereby improving the long-term sustainability of the BEE transaction. The Transaction will reduce SavCon's equity interest in AQPSA to 26% from the 29.5% acquired in terms of the BEE transaction; AQPSA will remain fully compliant with the BEE equity participation requirements of the Mineral and Petroleum Resources Development Act 2002.
The Transaction consideration was derived using the 90-day VWAP converted into South African Rand, the same calculation methodology used for SavCon's initial effective subscription for 24,599,542 AQP shares in 2004. This amounts to R117.36 per AQP share, resulting in total consideration payable to SavCon of R342.5 million (R117.36 per share x 2,918,590 shares). The Transaction has now completed all the necessary authorisations, importantly receiving the consent in terms of Section 11 (1) of the Mineral and Petroleum Resources Development Act, 2002, by the Director General of the South African Department of Minerals to transfer the shares within AQPSA.
As a result of the Transaction, AQP will now increase its ownership of AQPSA from 50.5% to 54%. The number of new AQP shares to which SavCon will be entitled to in exchange for its equity interest of 26% in AQPSA will reduce proportionately by 2,918,590 shares to 21,680,952 shares. The conditions for ultimate disposal of SavCon's 26% in AQPSA and the take-up of its AQP shares in terms of the Final Phase remain unchanged.
For further information please visit www.aquariusplatinum.com or contact:
In Australia:Willi Boehm+61 (0)8 9367 5211
In the United Kingdom and South Africa
Nick Bias
+ 44 (0)7887 920 530
REGISTERED OFFICE
Aquarius Platinum Limited ¢â€" Clarendon House ¢â€" 2 Church Street ¢â€" Hamilton HMCX Bermuda
Email: [email protected]
Telephone: +61 8 9367 5211
AQUARIUS PLATINUM LIMITEDRelated Shares:
AQP.L