Kalahari Minerals plc (`Kalahari' or `the Company')
Major strategic investment secured from APAC Resources
Kalahari Minerals plc, the AIM listed resource company, announces that APAC Resources Limited (`APAC'), a major Hong Kong listed company, focussed on natural resource investment opportunities and base metals trading, has agreed to acquire up to a 7.1 per cent. interest in the issued share capital of the Company.
Under the terms of the agreement between Coronet Resources Limited (`Coronet') Kalahari and APAC (`the Agreement'), Kalahari's wholly owned subsidiary Coronet has agreed to sell up to 16,000,000 ordinary shares in Kalahari (`the Share(s) ') at a price of GBP1.85 in cash per Share, equating to GBP29,600,000.00 (assuming all the Shares are purchased).
The Company intends to use the proceeds from the sale of the Shares for general working capital purposes.
Kalahari's Executive Chairman, Mark Hohnen, said, "I am delighted to welcome APAC to our shareholder register, as this gives further support to our already strong institutional backing. APAC has a venerable track record in the natural resource sector, with its CEO, Andrew Ferguson, bringing a wealth of experience of the London mining arena from his six years as co-fund manager at City Natural Resources High Yield Trust. Of equal importance are APAC's invaluable relationships and contacts in the Chinese commodities market, which further strengthens Kalahari's exposure to the Asian resource sector following the strategic shareholding taken in Kalahari by ITOCHU Corporation in March 2010.
"Our strategy to build our corporate profile with established investors is of paramount importance to the Company at this exciting time in our development. Accordingly, we look forward to keeping an active dialogue with APAC, as with all of our key strategic investors, to ensure we continue to build value for all stakeholders through the rapid development of our uranium, gold, copper and other base metal interests in Namibia."
Under the terms of the Agreement, an initial Tranche of 4,800,000 Shares (`Tranche 1') will be acquired by APAC on 7 May 2010 for a consideration of GBP 8,880,000.00. The balance of up to 11,200,000 Shares (`Tranche 2') will be acquired by APAC in full or in part, on, or prior to, 10 June 2010. APAC has committed to acquire a minimum of 7,432,616 of the Tranche 2 Shares by such date for a consideration of GBP13,750,339.60.
A further announcement will be made, regarding the exact number of Tranche 2 Shares acquired by APAC, in due course and, in any event, prior to 10 June 2010.
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EXT Price at posting:
$7.06 Sentiment: Buy Disclosure: Not Held
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