4th Oct 2012 15:08
AQUARIUS PLATINUM LIMITEDASX, LSE & JSE 4 October 2012
ISSUE OF SHARES TO SUPPORT BLACK ECONOMIC EMPOWERMENT PARTNERS OF AQUARIUS
The Company (which has a primary listing on the ASX in Australia, a premium listing on the London Stock Exchange and a secondary listing on the JSE in South Africa), advises that it has recently issued and allotted 14,000,000 fully paid common shares of US$0.05 at a price per share of 41.75 pence (A$0.64).
The issue of these shares is part of a transaction intended to preserve the black economic empowerment ("BEE") credentials of Aquarius. Following the decrease in the share price of Aquarius over recent months, the financing arrangements of Aquarius' cornerstone BEE shareholders, being Savannah, Chuma and Malibongwe, ("BEE Partners"), required the sale of approximately 35 million of the 64 million shares held by the BEE Partners. Aquarius is not a party to the current financing arrangements between the BEE Partners and its financiers.
The Board of Aquarius has considered the implications of these sales of the BEE Partners' shares and of further potential sales, and resolved that it is in the interests of Aquarius, and in line with its ongoing commitment to complying with the BEE and regulatory framework in South Africa, to assist the BEE Partners to preserve their remaining shareholdings in Aquarius.
In order to give effect to such resolution, Aquarius has lent its wholly owned subsidiary, Aquarius Platinum Investments Limited ("API") the proceeds of the share issue which API has applied to acquire 14 million fully paid common shares in Aquarius ("Shares"). Accordingly, this is a cash neutral transaction for the Aquarius group. It is proposed that API enter into a limited guarantee and pledge of the Shares ("Security Arrangements") with the financiers to Aquarius' BEE Partners. The purpose of the Security Arrangements is to provide sufficient share security to the BEE Partners' financiers. The Security Arrangements contain customary terms and conditions as well as specific events of release of the security, with the objective of limiting recourse and impact to API.
It is expected that admission will become effective and dealings in those shares will commence in London on 10 October 2012.
For further information please contact:
In Australia:Willi Boehm +61 8 9367 5211In South Africa:Jean Nel + 27 12 001 2001REGISTERED OFFICE
Aquarius Platinum Limited â— Clarendon House â— 2 Church Street â— Hamilton HMCX Bermuda
Email: info@aquariusplatinum.com
Telephone: +61 8 9367 5211
PINXRelated Shares:
AQP.L