Kalahari Minerals plc ('Kalahari' or 'the Company')
Placing to raise approximately £17.89 million
Kalahari Minerals plc, the AIM listed mining exploration group with a portfolio of uranium, copper and base metal interests in Namibia, announces that it has conditionally raised approximately £17.89 million (before expenses) by way of a placing by Ambrian Partners Limited and Mirabaud Securities plc ('the Joint Brokers') of 17,890,000 new ordinary shares of 1 pence each in the capital of the Company ('the Placing Shares'), with new and existing shareholders at a price of 100 pence per Placing Share ('the Placing Price') ('the Placing'). It is intended that the net proceeds of the Placing will be used to provide Kalahari with the capacity, to the extent that it is able, maintain its stake in Extract Resources Ltd (ASX and TSX: EXT) ('Extract').
Kalahari Chairman Mark Hohnen said, 'The aggressive exploration programme underway at Husab continues to churn out excellent results, particularly at the Rossing South target, which we believe has the potential to become one of the largest uranium deposits in the world. With this in mind, our shareholders expressed an interest in maintaining Kalahari's position in Extract to support its growth, so we were delighted to raise this money, which will enable us to do just that. We were also pleased to attract new institutions, which have also recognised the opportunity to become involved in such an exciting project and support the Placing, which was considerably oversubscribed.'
The Placing is conditional, inter alia, upon the Company obtaining general issuance authorities from the shareholders of the Company (“the Shareholders') at the Company's annual general meeting (“the AGM'). The AGM is to be held on 12 May 2009 at 10 a.m. at the offices of Lawrence Graham LLP, 4 More London Riverside, London SE1 2AU, notice of which was sent to Shareholders on 17 April 2009 (“the Notice'). At the time the Notice was sent, the directors of the Company (“the Directors') had no intention of undertaking a Placing. However, following the publication of updated drilling results by Extract on 27 April 2009 and the subsequent increase in the share price of both Extract and the Company, it was apparent that there was sufficient interest in the market for the Company to raise further funds. In the circumstances, the Directors considered that it was appropriate and prudent to take advantage of the opportunity that has arisen.
The Placing represents approximately 10 per cent. of the issued share capital of the Company and following Admission, the Placing Shares will represent 9.1 per cent. of the enlarged issued share capital.
The Placing is further conditional on admission of the Placing Shares being admitted to AIM ('Admission'). It is expected that Admission will occur, and dealings in the Placing Shares will commence, at 8.00 a.m. on 15 May 2009.
The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of Kalahari, including the right to receive any dividends and other distributions declared following Admission.
Under the terms of the Placing the Company has agreed to issue to the Joint Brokers 447,250 warrants each ('the Warrants') to subscribe for ordinary shares of 1 pence each in the Company ('the Ordinary Shares'). The Warrants have an exercise price of 100 pence per Ordinary Share. The Warrants will be exercisable at any time until 1st May 2011. Following the allotment of the Placing Shares the Company will have insufficient issuance authorities to grant the Warrants and it is agreed that the Warrants will be issued conditional upon Shareholder approval. It is intended that a circular shall be sent to Shareholders shortly convening a general meeting proposing such authorities and replacing the general authority proposed at the AGM which is being fully utilised in the Placing.
EXT Price at posting:
$4.90 Sentiment: LT Buy Disclosure: Held
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