TKG breaking out & have secured 1.5cent convertable...

TKG breaking out & have secured 1.5cent convertable notes:



TAKORADI LIMITED
ACN 006 708 676
Level 46 Telephone:
Governor Phillip Tower (02) 9252 6844
1 Farrer Place Facsimile:
SYDNEY NSW 2000 (02) 9252 8801
Postal Address:
GPO Box 5021
SYDNEY NSW 2001
7 November 2006
The Manager
Company Announcement Officer
Australian Stock Exchange Limited
Exchange Centre 20 Bridge Street
SYDNEY NSW 2000
Dear Sir
Please find attached an announcement in relation to the Company’s future financing
arrangements.
Yours faithfully
ROBERT BLAKE
Company Secretary
ANNOUNCEMENT
$3,750,000 Capital Raising
Three (3) Year Convertible Note Issue
At 1.5cents per share
The Board of Takoradi Limited (Takoradi) is pleased to advise that the company’s major
shareholder Notesan Pty Limited, a company associated with Mr Rodney Hudspeth the
Executive Chairman and CEO of Takoradi, has arranged additional working capital for the
Company by way of a A$3,750,000 three (3) year Convertible Note Issue with an 8% coupon
which may convert into 250,000,000 Fully Paid Ordinary Shares @ 1.5cents per share.
As a part of the arrangement, should Takoradi’s share price trade at any time over the life of
the note, at a 60 day weighted average price of 1.8cents per share, Takoradi can elect to call
for the conversion of the Note into equity at 1.5cents per share. If this occurs, within the first
six (6) month period of the issuance of the Note, there will be no interest due on the Note at
the time of the conversion.
The Convertible Note has been issued to The Sentient Group (Sentient) an independent
private equity firm based in the Cayman Islands. Sentient specializes in the global resources
industry taking direct and indirect interests in quoted and unquoted companies. Sentient also
provides early stage financing by way of debt and equity for mineral resource development
projects with significant growth potential.
Sentient recently completed a A$500 million capital raising for a new resources fund which
complements its initial fund of approximately A$225 million. Amongst its significant global
investors are the university endowment funds, Government Agencies, corporate pension
funds, family offices and resource industry participants.
Should the Note be exercised under the current share structure, Sentient would hold a 7.9%
interest in Takoradi. The top 20 shareholders in the Company, of which Sentient is now
potentially one, control approximately 64% of the current issued capital of Takoradi whilst the
top 200 shareholders account for over 85% of the issued shares of the Company. Takoradi
presently has approximately 5,000 shareholders.
The new funding will principally be used for the company’s increased activity in its newly
expanded, global mineral resources portfolio. This includes increasing its equity to 38.2% in
Hampden Mining Pty Ltd the company through which Takoradi holds its Chilean
copper/gold/molybdenum interests. The funds will also be used to further explore the very
promising, 70% owned Kuiseb, copper/gold deposit in Namibia, South Western Africa as well
as increasing its activity on its 80% owned Ghana, West Africa gold exploration properties,
specifically the Bole, Dokrupe gold deposit.
Takoradi is extremely pleased to have Sentient as a potential new, significant shareholder. It
is also pleased to have the opportunity of working closely in the future with Sentient’s very
experienced management team which has a broad, professional skill base in the natural
resources investment and mining industry.