JOINT ANNOUNCEMENT OF FIRM INTENTION TO MAKE OFFERS TO THE SHAREHOLDERS OF CAPEVIN HOLDINGS AND TO THE SHAREHOLDERS OF CAPEVIN INVESTMENTS
Shareholders of Capevin Holdings and Capevin Investments are hereby advised that the board of directors of Capevin Holdings and the board of directors of Capevin Investments have each received formal notification from Zeder that Zeder and Remgro or, in the case of Remgro, any wholly-owned subsidiary of Remgro nominated by Remgro for this purpose will make joint offers to acquire the ordinary shares of shareholders in Capevin Holdings and in Capevin Investments.
Zeder currently owns approximately 34.9% of the ordinary shares in Capevin Holdings, which, in turn, owns approximately 51% of the ordinary shares in Capevin Investments.
Remgro currently owns approximately 9.6% of the ordinary shares in Capevin
Investments.
On 6 January 2010 Zeder entered into an agreement with Phetogo Investments Limited to acquire 38 096 480 ordinary shares in Capevin Holdings held by Phetogo at a price of R3.35 per Phetogo Share. The Phetogo Shares constitute approximately 8.5% of the issued ordinary shares of Capevin Holdings. In terms of the aforesaid agreement, Zeder is entitled to and has nominated Remgro to acquire 75% of the Phetogo Shares, while Zeder will acquire the remaining 25%. Remgro has accepted this nomination and has in turn nominated one of its wholly-owned subsidiaries to acquire its portion of the Phetogo Shares.
The Phetogo Transaction is subject to the fulfilment of the suspensive conditions that the special resolution passed by the shareholders of Phetogo authorising the Phetogo Transaction, be registered by the Registrar of Companies within 30 days of conclusion of the agreement of sale regulating the Phetogo Transaction (the special resolution has been lodged with the Registrar of Companies and it is anticipated that registration will be complete within the next few days) and the Securities Regulation Panel confirms that the offer consideration offered to the shareholders of Capevin Holdings is comparable to the offer consideration offered to the shareholders of Capevin Investments.
If the Phetogo Transaction becomes unconditional and is implemented it will result in the Offerors collectively being able to exercise more than 35% of the voting rights in Capevin Holdings. As a result the Offerors, who are acting in concert as contemplated in the Securities Regulation Code on Takeovers and Mergers and the Rules of the Securities Regulation Panel, will then become obliged, in terms of Rule 8 of the Code, to make an offer to the shareholders of Capevin Holdings, other than Zeder, to acquire their shares in Capevin Holdings. Since Capevin Holdings is a pyramid company, as defined in the Code, in relation to Capevin Investments, the Offerors will then also become obliged, in terms of Rule 6.3 of the Code, to make a comparable offer to the shareholders of Capevin Investments, other than Remgro and its wholly-owned subsidiaries, to acquire their shares in Capevin Investments.
The Capevin Holdings offer
The Offerors shall jointly make an offer to the shareholders of Capevin Holdings, other than Zeder, to acquire all of their ordinary shares in Capevin Holdings in exchange for the offer consideration set out below. The Capevin Holdings Shareholders will be entitled to accept the Capevin Holdings Offer in whole or in part.
The Capevin Investments offer
The Offerors shall jointly make an offer to the shareholders of Capevin
Investments, other than Remgro and its wholly-owned subsidiaries, to acquire all of their ordinary shares in Capevin Investments in exchange for the offer consideration set out below. The Capevin Investment Shareholders will be entitled to accept the Capevin Investments Offer in whole or in part. Capevin Holdings has provided the Offerors with an irrevocable undertaking not to accept the Capevin Investments Offer.
The offer consideration
The offer consideration payable to the Capevin Holdings Shareholders shall be R3.35 per ordinary share in respect of which the Capevin Holdings Offer is accepted. The offer consideration constitutes a premium of 15.5% to the 30-day volume weighted price of such shares on the over the counter market as at 1 December 2009.
The offer consideration payable to the Capevin Investments Shareholders shall be R70.05 per ordinary share in respect of which the Capevin Investments Offer is accepted. The offer consideration represents a discount of 4.8% to the 30-day volume weighted price of such shares on the JSE as at 1 December 2009.
The offer consideration in respect of the Offers shall be payable in cash.
The Capevin Holdings Board and the Capevin Investments Board have appointed QuestCo Sponsors (Proprietary) Limited as the independent advisor to advise on whether the terms and conditions of the Capevin Holdings Offer and of the Capevin Investments Offer are fair to the Capevin Holdings Shareholders and the Capevin Investments Shareholders, respectively. The opinions of QuestCo in this regard will be included in the circulars to be sent to the Capevin Holdings Shareholders and the Capevin Investments Shareholders referred to below.
The Offers will be open for acceptance from 09:00 on Monday, 25 January 2010 and will close at 12:00 on Friday, 19 February 2010. The Offerors reserve the right to extend the Closing Date of either or both Offers, with the prior approval of the Securities Regulation Panel. Any such extension will be published on SENS (only in the case of an extension of the Closing Date of the Capevin Investments Offer) and in the press prior to the Closing Date.
Allocation of Capevin Holdings shares and Capevin Investments shares acquired in terms of the Offers Shares acquired in terms of the Offers will be allocated between Remgro and Zeder on the following basis:
-all shares will be acquired by Remgro until such time as Remgro's effective shareholding in Capevin Investments equals that of Zeder on a "see through" basis; and
-if and when Remgro achieves the level of effective shareholding in Capevin
Investments as described above, any remaining shares acquired in terms of the Offers will be acquired in equal proportions by Remgro and Zeder.
The Offers will be subject to fulfilment of the condition precedent that the Phetogo Transaction becomes unconditional in accordance with its terms.
The SRP has received written confirmations, as contemplated in Rule 2.3.2 (b)and 21.7 of the Code, from PSG Group Limited that Zeder and from Rand Merchant Bank, a division of FirstRand Bank Limited, that Remgro each has sufficient cash resources and/or facilities available to it to meet its cash commitments under the Offers.
Friday, January 8, 2010
Thursday, January 7, 2010
GOLD FIELDS ISSUES GUIDANCE UPDATE
Gold Fields Limited (Gold Fields) today issued updated production guidance for Q2 F2010.
Attributable production for Q2 F2010 is expected to be approximately 900koz,which is 2.8% lower than the previous guidance of 925koz, provided on 29 October 2009.
Attributable production for Q2 F2010 is expected to be approximately 900koz,which is 2.8% lower than the previous guidance of 925koz, provided on 29 October 2009.
The lower production is mainly as a result of seismic related production stoppages experienced in South Africa. At the Driefontein mine in particular, seven days of production, or almost one third of the December production month, were lost due to a major seismic event which resulted in an extended search and rescue operation, as previously reported.
In line with the lower production, total cash costs and notional cash expenditure (NCE) for the Group are expected to be approximately US$615/oz and US$900 respectively, which is approximately 4% and 3% higher than guidance. The full results for the Group will be published on Thursday, 4 February, 2010.
In line with the lower production, total cash costs and notional cash expenditure (NCE) for the Group are expected to be approximately US$615/oz and US$900 respectively, which is approximately 4% and 3% higher than guidance. The full results for the Group will be published on Thursday, 4 February, 2010.
Tuesday, December 15, 2009
HOTTENTOTSVIS DERBY 27 MAART 2010
KOöRDINEERDERS: RUDI VAN NIEKERK 083 418 4137
EDDIE TREURNICHT 022 713 2566
THERISA VAN NIEKERK 083 293 7265
FAKS: 022 713 2572
BESTE HENGEL VRIENDE
ONS HOU HIERDIE JAAR WEER ‘n HOTTENTOTSVIS DERBY. DIT SAL IN DIE SALDANHA VLOOT AKEDEMIE GEHOU WORD – ‘n GELEENTHEID WAT JOU NIE ELKE DAG TE BEURT VAL NIE.
SPANNE: 4 HENGELAARS PER SPAN OF INDIVIDUELE INSKRYWINGS
KOSTE: R130.00 PER PERSOON (ete ingesluit)
DEPOSITO’S: 50% BETAALBAAR VOOR OF OP 20 MAART 2010. INDIEN U ONTREK IS DIE DEPOSITO NIE TERUG BETAALBAAR NIE.
BANKBESONDERHEDE: WESKUS ROTS EN STRAND HENGEL ASSOSIASIE
ABSA VREDENBURG
TJEK REKENING: 1010282191
TAK KODE: 521 911
PRYSE: SWAARSTE HOTTENTOTS VIS: R2 000.00
2ND SWAARSTE HOTTENTOTS VIS: R1 000.00
3RD SWAARSTE HOTTENTOTS VIS: R 500.00
4TH SWAARSTE HOTTENTOTS VIS: R 250.00
5TH SWAARSTE HOTTENTOTS VIS: R 100.00
SWAARTSE SAK: R1 000.00
2ND SWAARSTE SAK: R 500.00
3RD SWAARSTE SAK: R250.00
4TH SWAARSTE SAK : R150.00
5TH SWAARSTE SAK: R100.00
1ST SPAN: R400.00 EN GOUE MEDALJE
2ND SPAN: SILWER MEDALJE
3RD SPAN: BRONS MEDALJE
GESEELDE GEWIG EN BAIE “LUCKY DRAWS”
Jasco Electronics Holdings Limited - Acquisition by Jasco Trading
A 51% EQUITY INTEREST IN AND SHAREHOLDER LOAN OF LeBLANC CIH LIGHTING STRUCTURES (PROPRIETARY) LIMITED ("LS") FROM COMMUNITY INVESTMENT HOLDINGS (PROPRIETARY) LIMITED ("CIH)
Jasco shareholders are hereby advised that on 8 December 2009, unconditional agreement was reached between Jasco Trading and Namane Electrical (Proprietary) Limited ("Namane"), a wholly owned subsidiary of CIH ("the Seller"), whereby Jasco Trading will acquire a 51% equity interest in and shareholder loan of LS for a purchase consideration of R7 million ("the purchase consideration") ("the Acquisition"). The effective date of the Acquisition is 1 September 2009.
LS has been operating from a factory in Nigel for over 20 years and is involved in the design, manufacture and installation of lighting, broadcasting and telecommunication steel structures in Sub-Saharan Africa. LS has a broad range of customers (in excess of 100) with 20% of customers making up 70% of total sales in 2008.
The remaining 49% equity interest in LS is owned by LeBlanc Communications South Africa (Proprietary) Limited ("LC") a subsidiary of LeBlanc International PTE Limited ("LBI"). LBI also owns 50% of WebbLeBLANC Communications (Proprietary) Limited ("WLB"), with the remaining 50% held by Jasco
Southern Africa is going through a phase of unprecedented infrastructure development due to ailing infrastructure. This has resulted in increased spend on infrastructure upgrades such as rail networks, ports and harbours, roads and pipelines. South African specific local infrastructure developments include major new power stations by Eskom and the 2010 Soccer World Cup stadiums.
In addition, the local and rest of Africa's communications market continues to grow, with leading fixed and wireless operators currently aggressively rolling out infrastructure or announcing plans to expand their networks. In South Africa, new legislation will allow individual electronic communication network service providers (I-ECN's) to develop and operate their own communications networks.
In summary, the medium to long term market and economic outlook is positive for the products and services offered by LS. LS was therefore identified as a suitable acquisition that will satisfy the objective of growth in accordance with Jasco's strategy. Management strongly believes that the Acquisition will enable Jasco to achieve the following objectives:
- Webb Industries, a Jasco Telecommunications division, can assist in providing kitting that is used in the deployment of the various lighting structures offered by LS;
- Jasco's Security division occasionally requires monopoles for their equipment and LS could supply these monopoles and masts; and
- Maringo Communications (Proprietary) Limited, a recent Jasco investment, may be able to use LS' monopole structures in their network build requirements.
The remaining 49% equity interest in LS is owned by LeBlanc Communications South Africa (Proprietary) Limited ("LC") a subsidiary of LeBlanc International PTE Limited ("LBI"). LBI also owns 50% of WebbLeBLANC Communications (Proprietary) Limited ("WLB"), with the remaining 50% held by Jasco
Southern Africa is going through a phase of unprecedented infrastructure development due to ailing infrastructure. This has resulted in increased spend on infrastructure upgrades such as rail networks, ports and harbours, roads and pipelines. South African specific local infrastructure developments include major new power stations by Eskom and the 2010 Soccer World Cup stadiums.
In addition, the local and rest of Africa's communications market continues to grow, with leading fixed and wireless operators currently aggressively rolling out infrastructure or announcing plans to expand their networks. In South Africa, new legislation will allow individual electronic communication network service providers (I-ECN's) to develop and operate their own communications networks.
In summary, the medium to long term market and economic outlook is positive for the products and services offered by LS. LS was therefore identified as a suitable acquisition that will satisfy the objective of growth in accordance with Jasco's strategy. Management strongly believes that the Acquisition will enable Jasco to achieve the following objectives:
- LS qualifies as an acquisition that could contribute to revenue and earnings growth over the next five years;
- LBI offers additional contracts in Africa, such as the opening of a warehouse in Ghana for Alcatel/Lucent. This warehouse opens up West Africa for the sale of both communications and lighting structures as telecommunication and electrification networks are expanded in that part of the continent;
- various opportunities for inter-divisional supply, such as:
- Webb Industries, a Jasco Telecommunications division, can assist in providing kitting that is used in the deployment of the various lighting structures offered by LS;
- Jasco's Security division occasionally requires monopoles for their equipment and LS could supply these monopoles and masts; and
- Maringo Communications (Proprietary) Limited, a recent Jasco investment, may be able to use LS' monopole structures in their network build requirements.
In addition, the Acquisition was also effected for the following reasons:
- to further enhance Jasco's relationship with its international partner, LBI;
- to consolidate the management and administrative functions of WLB and LS into one operational site to extract efficiencies;
- to generate savings in raw material costs such as steel and galvanising due to increased economies of scale; and
- to extract savings in labour costs through sharing of a common labour pool.
- payment of the amount of R4 million in four equal monthly installments of R1 million each to the Seller, commencing in December 2009; and
- assuming the liability to repay the R3 million vendor loan granted to CIH when CIH acquired its 51% equity share in LS from LBI in 2006 ("the vendor loan").
Tuesday, November 10, 2009
Mazor
Interim results for the six months ended 31 August 2009
HIGHLIGHTS
* Revenue up 45.8%
* Operating profit up 69.6%
* Core HEPS up 54.4%
* Introduction of strategic equity partner
* Expanded national and cross-border footprint
The directors are pleased to present the unaudited consolidated results for the six months ended 31 August 2009, which continue to reflect robust top and bottom line growth. Being a scalable business with an established and flexible infrastructure, Mazor successfully weathered the challenging economic environment to maintain its record of consistent growth.
During the period the group concluded a R27.3 million share buy-in agreement with boutique investment banking and private equity specialist, Global Capital (Pty) Limited. The investment introduced a strategic shareholder with a proven track record of partnering growth companies, adding impetus to Mazor's diversification and acquisition strategy.
Group profile
Founded in the Western Cape nearly 30 years ago, the group now also operates in Gauteng, KwaZulu-Natal and the Eastern Cape following a successful geographical expansion programme.
Mazor comprises three key divisions:
* Mazor Steel which designs, supplies and erects structural steel frames;
* Mazor Aluminium which designs, manufactures and installs aluminium structures such as doors, windows, shopfronts, facades and balustrades for major blue-chip construction groups. Mazor Aluminium is South Africa's leading specialist in the technique of glass facade cladding, capitalising on vertical integration opportunities within the group; and
* Glass which manufactures and distributes laminated and toughened safety glass and double-glazed units.
Introduction of strategic partner
As previously announced on 6 August 2009 Mazor concluded an agreement with Global Capital to acquire 12 284 722 Mazor shares, at a price of R2.225 per share, amounting to an aggregate consideration of R27 333 506. The Global Capital transaction was approved by shareholders in a general meeting on 18 September 2009. The sale of shares to Global Capital generated net after-tax profit (included in equity) of R6.8 million.
The shares, constituting 10% of the entire issued share capital of Mazor, were previously held as treasury shares in terms of section 89 of the South African Companies Act, 1973.
Global Capital's skill and expertise is expected to support Mazor's strategy of identifying acquisitions that diversify its revenue stream. The group is currently pursuing a number of opportunities in this regard while being cognisant of the relevant risk profile. Global Capital's proven track record highlights its ability to add value through strategic input.
Directorate
Following the Global Capital transaction, Global Capital CEO Frank Boner was appointed as a non-executive director to the board of Mazor. We welcome him to the board and look forward to his contribution.
Review of operations
Mazor Steel and Mazor Aluminium continue to account for the majority of group revenue and profitability and again performed well despite tough market conditions. The divisions expanded further into high-growth regions such as Port Elizabeth and KwaZulu-Natal to counter the impact of a flailing economy in Mazor's traditional base of operation, the Western Cape. Following the downscaling of projects in traditional markets the group is seeking larger-scale, higher margin projects outside of South Africa and is currently making inroads into Namibia and Angola. No major capital expenditure was incurred by either division during the period. Notwithstanding the industry downturn the performance of the Glass Division was encouraging with a steady increase in revenue. The wider product range and geographic expansion are expected to help boost performance going forward. The weak economy has enabled the division to secure a number of strong new personnelto drive future growth. Mazor continued its investment in plant and equipment tofurther bolster the division's capacity, with capital expenditure for the periodtotalling R6 million.
Financial results
Revenue for the period increased by 45.8% on the comparative period to R180.2 million from R123.6 million. Net profit grew 26.9% to R32.2 million from R25.4 million, generating headline earnings per share of 29.19 cents compared to 20.75cents in the comparative period. Operating profit grew 69.6% to R48.3 million from R28.5 million. Earnings per share increased 40.75% to 29.16 cents from 20.72 cents.
Core headline earnings per share increased 54.4% from 20.75 cents per share to 32.03 cents per share. (Core headline earnings is calculated after adjusting forthe share-based payment that arose as a result of the Global Capital transaction- see "Introduction of strategic partner" above.)
The share-based payment charge is purely an accounting entry as required in terms of IFRS 2 and has no effect on the cash flows or net asset value of the group.
Mazor remains cash flush with cash on hand of R115.4 million. The cash inflow from the Global Capital transaction only occurred post the end of the period during September 2009.
At 31 August 2009, the group had issued guarantees amounting to R44.4 million compared with R33.9 million at 31 August 2008. These guarantees have arisen in the ordinary course of business and it is not expected that any loss will arisetherefrom. Net asset value increased 35.6% from 140.9 cents per share (31 August 2008) to 191 cents per share.
Share transactions
During the period 1 938 401 shares were repurchased at an average price of R1.64 per share, bringing the number of Mazor shares held as treasury shares to13 698 627. The group sold 12 284 722 shares (see "Introduction of strategic partner") and cancelled 1 345 669 shares. At 31 August 2009, 68 236 Mazor shareswere held as treasury shares.
Ordinary shares in issue at 31 August 2008 and 28 February 2009 have been restated to take into account treasury shares. This has no effect on published results.
Prospects
Notwithstanding prevailing market conditions the board maintains a positive outlook for the full year to February 2010. Mazor will continue to expand geographically in all three divisions, particularly targeting new opportunitiesin high-growth areas such as Gauteng and Africa. The expanded and upgraded product range in the Glass Division should further contribute to a continually improving performance. Backed by positive cash holdings, Mazor continues to identify acquisition opportunities within the construction industry either for geographic expansion or additional product differentiation. The group will continue to assess diversification into untapped markets such as the industrial and motor sectors.
Dividends
A dividend of 17.5 cents per share in respect of the year ending 28 February 2009, totalling R21.3 million, was paid on 13 July 2009 and is reflected in these results net of treasury share dividends received. In line with company policy no interim dividend has been declared for the period. It isthe intention of the board to declare a dividend for the full year ending.
HIGHLIGHTS
* Revenue up 45.8%
* Operating profit up 69.6%
* Core HEPS up 54.4%
* Introduction of strategic equity partner
* Expanded national and cross-border footprint
The directors are pleased to present the unaudited consolidated results for the six months ended 31 August 2009, which continue to reflect robust top and bottom line growth. Being a scalable business with an established and flexible infrastructure, Mazor successfully weathered the challenging economic environment to maintain its record of consistent growth.
During the period the group concluded a R27.3 million share buy-in agreement with boutique investment banking and private equity specialist, Global Capital (Pty) Limited. The investment introduced a strategic shareholder with a proven track record of partnering growth companies, adding impetus to Mazor's diversification and acquisition strategy.
Group profile
Founded in the Western Cape nearly 30 years ago, the group now also operates in Gauteng, KwaZulu-Natal and the Eastern Cape following a successful geographical expansion programme.
Mazor comprises three key divisions:
* Mazor Steel which designs, supplies and erects structural steel frames;
* Mazor Aluminium which designs, manufactures and installs aluminium structures such as doors, windows, shopfronts, facades and balustrades for major blue-chip construction groups. Mazor Aluminium is South Africa's leading specialist in the technique of glass facade cladding, capitalising on vertical integration opportunities within the group; and
* Glass which manufactures and distributes laminated and toughened safety glass and double-glazed units.
Introduction of strategic partner
As previously announced on 6 August 2009 Mazor concluded an agreement with Global Capital to acquire 12 284 722 Mazor shares, at a price of R2.225 per share, amounting to an aggregate consideration of R27 333 506. The Global Capital transaction was approved by shareholders in a general meeting on 18 September 2009. The sale of shares to Global Capital generated net after-tax profit (included in equity) of R6.8 million.
The shares, constituting 10% of the entire issued share capital of Mazor, were previously held as treasury shares in terms of section 89 of the South African Companies Act, 1973.
Global Capital's skill and expertise is expected to support Mazor's strategy of identifying acquisitions that diversify its revenue stream. The group is currently pursuing a number of opportunities in this regard while being cognisant of the relevant risk profile. Global Capital's proven track record highlights its ability to add value through strategic input.
Directorate
Following the Global Capital transaction, Global Capital CEO Frank Boner was appointed as a non-executive director to the board of Mazor. We welcome him to the board and look forward to his contribution.
Review of operations
Mazor Steel and Mazor Aluminium continue to account for the majority of group revenue and profitability and again performed well despite tough market conditions. The divisions expanded further into high-growth regions such as Port Elizabeth and KwaZulu-Natal to counter the impact of a flailing economy in Mazor's traditional base of operation, the Western Cape. Following the downscaling of projects in traditional markets the group is seeking larger-scale, higher margin projects outside of South Africa and is currently making inroads into Namibia and Angola. No major capital expenditure was incurred by either division during the period. Notwithstanding the industry downturn the performance of the Glass Division was encouraging with a steady increase in revenue. The wider product range and geographic expansion are expected to help boost performance going forward. The weak economy has enabled the division to secure a number of strong new personnelto drive future growth. Mazor continued its investment in plant and equipment tofurther bolster the division's capacity, with capital expenditure for the periodtotalling R6 million.
Financial results
Revenue for the period increased by 45.8% on the comparative period to R180.2 million from R123.6 million. Net profit grew 26.9% to R32.2 million from R25.4 million, generating headline earnings per share of 29.19 cents compared to 20.75cents in the comparative period. Operating profit grew 69.6% to R48.3 million from R28.5 million. Earnings per share increased 40.75% to 29.16 cents from 20.72 cents.
Core headline earnings per share increased 54.4% from 20.75 cents per share to 32.03 cents per share. (Core headline earnings is calculated after adjusting forthe share-based payment that arose as a result of the Global Capital transaction- see "Introduction of strategic partner" above.)
The share-based payment charge is purely an accounting entry as required in terms of IFRS 2 and has no effect on the cash flows or net asset value of the group.
Mazor remains cash flush with cash on hand of R115.4 million. The cash inflow from the Global Capital transaction only occurred post the end of the period during September 2009.
At 31 August 2009, the group had issued guarantees amounting to R44.4 million compared with R33.9 million at 31 August 2008. These guarantees have arisen in the ordinary course of business and it is not expected that any loss will arisetherefrom. Net asset value increased 35.6% from 140.9 cents per share (31 August 2008) to 191 cents per share.
Share transactions
During the period 1 938 401 shares were repurchased at an average price of R1.64 per share, bringing the number of Mazor shares held as treasury shares to13 698 627. The group sold 12 284 722 shares (see "Introduction of strategic partner") and cancelled 1 345 669 shares. At 31 August 2009, 68 236 Mazor shareswere held as treasury shares.
Ordinary shares in issue at 31 August 2008 and 28 February 2009 have been restated to take into account treasury shares. This has no effect on published results.
Prospects
Notwithstanding prevailing market conditions the board maintains a positive outlook for the full year to February 2010. Mazor will continue to expand geographically in all three divisions, particularly targeting new opportunitiesin high-growth areas such as Gauteng and Africa. The expanded and upgraded product range in the Glass Division should further contribute to a continually improving performance. Backed by positive cash holdings, Mazor continues to identify acquisition opportunities within the construction industry either for geographic expansion or additional product differentiation. The group will continue to assess diversification into untapped markets such as the industrial and motor sectors.
Dividends
A dividend of 17.5 cents per share in respect of the year ending 28 February 2009, totalling R21.3 million, was paid on 13 July 2009 and is reflected in these results net of treasury share dividends received. In line with company policy no interim dividend has been declared for the period. It isthe intention of the board to declare a dividend for the full year ending.
Friday, November 6, 2009
African Eagle Resources plc - Latest Drilling Results From African
First assay results from 2009 drilling programme
- Results received from first 17 of approximately 120 planned holes.
- Key mineralised intersections include
- 18m at 1.2% nickel including 9m @ 1.7%
- 15m at 1.1% nickel
- 27m at 0.9% nickel
- Option exercised on the Ngasamo deposit
- Deposit modelling contract awarded to Snowden Mining Services
- Logistics study awarded to Drum Resources Limited
African Eagle's Managing Director Mark Parker comments, "We are pleased to report that we have successfully completed our drilling programme to define the margins of the Wamangola Hill Deposit at the Dutwa Nickel Project in Tanzania. We recently received preliminary assay results from the first few drill holes, which are in line with our expectations. The rig will now move to Ngasamo Hill, where our recently completed surface surveys have confirmed that the laterite is nickel bearing. As a result, we have exercised our option to earn an interest in Ngasamo.
"The appointment of Snowden Mining Industry Consultants to conduct the deposit modelling and Drum Resources Limited to carry out the logistics study gets our feasibility study well under way."
Drilling
The programme of step-out and infill Reverse Circulation (RC) drilling at the main Wamangola deposit was completed last week, with 62 RC holes drilled for a total of 3299m, to an average depth of 53m.The programme was designed to improve the definition of the deposit, especially around the edges, which were not fully investigated by previous drilling campaigns. The results should allow an upgrade of the resource estimate to JORC indicated category and may also add to the 31 million tonnes, 1.1% nickel resource announced last November. Preliminary assay results for nickel have now been received from the first 17 drill holes and the results are in line with our expectations for the deposit margins, where the laterite is somewhat thinner and lower grade than in the centre. The samples are now being prepared for assay for a wider suite of chemical elements.
Ngasamo Option Exercised
Having completed the Wamangola step-out and infill programme, drilling will move 7km west to Ngasamo Hill. African Eagle recently completed surface surveys over this area, which supported the Company's view that the laterite at Ngasamo Hill is geologically very similar to that at Wamangola and holds a potentially significant nickel endowment. African Eagle has therefore exercised its option with Ngasamo's owners, (Safina a.s. of the Czech Republic and its Tanzanian subsidiary Precious Metals Refinery Company Ltd), to earn an interest in the prospect.Under the earn-in Agreement, announced 7 April 2009, the Company will now earn an initial 35% interest by conducting and co-funding the current RC drilling programme to delineate a JORC inferred resource at Ngasamo. It can then increase this to 50% by sole-funding the promotion of the resource to indicated category and to 75% by including the Ngasamo deposit in the global feasibility study. On completion of the feasibility study, Safina will convert its interest in Ngasamo into an interest in the whole project, according to the ratio of the two companies' attributable interests in the global resources.
Deposit modelling and logistics contracts
African Eagle has awarded two significant contracts which will form key parts of the Dutwa feasibility study. The Company has appointed Snowden Mining Industry Consultants to carry out deposit modelling and mine planning on the drill results. Snowden has one the best records of any consulting group in nickel laterite advanced deposit modelling, resource estimation and/or mine engineering studies including Koniambo in New Caledonia (Xstrata Nickel, formerly Falconbridge); Caldag in Turkey and Acoje in the Philippines (European Nickel); Ravensthorpe (BHP Billiton) and Murrin Murrin (Anaconda Nickel) both in Australia. Other recent Snowden clients include Heron Resources, Intex Resources, Toledo Mining(Berong and Ipilan).
African Eagle has also awarded the contract for a logistics and transport study to Drum Resources Limited, a UK based group specialising in logistics in Africa. Drum has extensive experience of providing logistics services to the mineral industry, including copper supply chain management from the Democratic Republic of Congo and for chrome and manganese mines in South Africa, as well as expertise in broader commodity import and export logistics.
- Results received from first 17 of approximately 120 planned holes.
- Key mineralised intersections include
- 18m at 1.2% nickel including 9m @ 1.7%
- 15m at 1.1% nickel
- 27m at 0.9% nickel
- Option exercised on the Ngasamo deposit
- Deposit modelling contract awarded to Snowden Mining Services
- Logistics study awarded to Drum Resources Limited
African Eagle's Managing Director Mark Parker comments, "We are pleased to report that we have successfully completed our drilling programme to define the margins of the Wamangola Hill Deposit at the Dutwa Nickel Project in Tanzania. We recently received preliminary assay results from the first few drill holes, which are in line with our expectations. The rig will now move to Ngasamo Hill, where our recently completed surface surveys have confirmed that the laterite is nickel bearing. As a result, we have exercised our option to earn an interest in Ngasamo.
"The appointment of Snowden Mining Industry Consultants to conduct the deposit modelling and Drum Resources Limited to carry out the logistics study gets our feasibility study well under way."
Drilling
The programme of step-out and infill Reverse Circulation (RC) drilling at the main Wamangola deposit was completed last week, with 62 RC holes drilled for a total of 3299m, to an average depth of 53m.The programme was designed to improve the definition of the deposit, especially around the edges, which were not fully investigated by previous drilling campaigns. The results should allow an upgrade of the resource estimate to JORC indicated category and may also add to the 31 million tonnes, 1.1% nickel resource announced last November. Preliminary assay results for nickel have now been received from the first 17 drill holes and the results are in line with our expectations for the deposit margins, where the laterite is somewhat thinner and lower grade than in the centre. The samples are now being prepared for assay for a wider suite of chemical elements.
Ngasamo Option Exercised
Having completed the Wamangola step-out and infill programme, drilling will move 7km west to Ngasamo Hill. African Eagle recently completed surface surveys over this area, which supported the Company's view that the laterite at Ngasamo Hill is geologically very similar to that at Wamangola and holds a potentially significant nickel endowment. African Eagle has therefore exercised its option with Ngasamo's owners, (Safina a.s. of the Czech Republic and its Tanzanian subsidiary Precious Metals Refinery Company Ltd), to earn an interest in the prospect.Under the earn-in Agreement, announced 7 April 2009, the Company will now earn an initial 35% interest by conducting and co-funding the current RC drilling programme to delineate a JORC inferred resource at Ngasamo. It can then increase this to 50% by sole-funding the promotion of the resource to indicated category and to 75% by including the Ngasamo deposit in the global feasibility study. On completion of the feasibility study, Safina will convert its interest in Ngasamo into an interest in the whole project, according to the ratio of the two companies' attributable interests in the global resources.
Deposit modelling and logistics contracts
African Eagle has awarded two significant contracts which will form key parts of the Dutwa feasibility study. The Company has appointed Snowden Mining Industry Consultants to carry out deposit modelling and mine planning on the drill results. Snowden has one the best records of any consulting group in nickel laterite advanced deposit modelling, resource estimation and/or mine engineering studies including Koniambo in New Caledonia (Xstrata Nickel, formerly Falconbridge); Caldag in Turkey and Acoje in the Philippines (European Nickel); Ravensthorpe (BHP Billiton) and Murrin Murrin (Anaconda Nickel) both in Australia. Other recent Snowden clients include Heron Resources, Intex Resources, Toledo Mining(Berong and Ipilan).
African Eagle has also awarded the contract for a logistics and transport study to Drum Resources Limited, a UK based group specialising in logistics in Africa. Drum has extensive experience of providing logistics services to the mineral industry, including copper supply chain management from the Democratic Republic of Congo and for chrome and manganese mines in South Africa, as well as expertise in broader commodity import and export logistics.
First Uranium Corporation
First Uranium Continues To Operate And Ramp Up Production At Its Mine Waste Solutions Tailing Recovery Operation.
First Uranium Corporation reports, that contrary to a recent report in the South African media, gold production and construction of future gold and uranium plant modules continue unabated at the Company's Mine Waste Solutions tailings recovery operation ("MWS") in South Africa. The Company has, however, temporarily suspended its work in preparation of the site for a new Tailings Storage Facility ("TSF"), which is designed to accommodate future tailings deposition capacity requirements. After granting an authorization to proceed with the new TSF, regulators have withdrawn that authorization pending further discussions with the Company.
First Uranium takes seriously the near-term issues facing the Company regarding environmental authorization of its TSF. The Company continues to act in accordance with widely accepted mining practices in the regulators' jurisdiction and is optimistic that the withdrawal will be lifted. Having the approval to proceed with a new tailings deposition site is vital to ensuring the significant economic benefit for the region that is expected to stem from MWS and to the future stability of approximately 5,000 jobs at MWS and neighbouring companies.
This new TSF has been designed to significantly reduce the environment impact of mining in the area and to improve the site's visual appeal as the new TSF is planned to have:
- a more environmentally benign impact than the existing tailings sites as a significant amount of certain metals and minerals present in the existing tailings, such as uranium, pyrite and sulphur are to be removed during re-processing of these tailings;
- reduced risk of erosion as the side slopes that will be built at a lower gradient and gradually vegetated as the facility is built;
- contours that will be more rounded to blend with the surrounding natural landscape;
- systems that will recycle and reuse the water used to transport the tailings to the new site wherever possible; and
- been built on impermeable soils, unlike the porous dolomites which host much of the historical tailings.
The older tailings deposits, that the TSF is replacing, are to be rehabilitated once the tailings from each such deposit are reprocessed. While the Company engages in appropriate discussions with public officials to address any and all queries that have arisen regarding the TSF, First Uranium continues to remain focused on its operations at both MWS and the Ezulwini Mine.
"First Uranium remains confident that this interruption in the development of the TSF will not diminish the Company's ability to execute its mine plans at both of its gold and uranium assets," explained Gordon Miller, President and CEO of First Uranium. "As with the development of all mines, there are operational issues to overcome. However, we anticipate that this development
with the new tailings storage facility will, in hindsight, be characterized as one example in a series of challenges that, once overcome, have brought two exceptional assets into full, long-life production." About First Uranium Corporation First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming a significant low-cost producer of uranium and gold through the expansion of the underground development to feed the new uranium and gold plants at the Ezulwini Mine and through the expansion of the plant capacity of the Mine Waste Solutions tailings recovery facility, both operations situated in South Africa. First Uranium also plans to grow production by pursuing value-enhancing acquisition and joint venture opportunities in South Africa and elsewhere.
First Uranium Corporation reports, that contrary to a recent report in the South African media, gold production and construction of future gold and uranium plant modules continue unabated at the Company's Mine Waste Solutions tailings recovery operation ("MWS") in South Africa. The Company has, however, temporarily suspended its work in preparation of the site for a new Tailings Storage Facility ("TSF"), which is designed to accommodate future tailings deposition capacity requirements. After granting an authorization to proceed with the new TSF, regulators have withdrawn that authorization pending further discussions with the Company.
First Uranium takes seriously the near-term issues facing the Company regarding environmental authorization of its TSF. The Company continues to act in accordance with widely accepted mining practices in the regulators' jurisdiction and is optimistic that the withdrawal will be lifted. Having the approval to proceed with a new tailings deposition site is vital to ensuring the significant economic benefit for the region that is expected to stem from MWS and to the future stability of approximately 5,000 jobs at MWS and neighbouring companies.
This new TSF has been designed to significantly reduce the environment impact of mining in the area and to improve the site's visual appeal as the new TSF is planned to have:
- a more environmentally benign impact than the existing tailings sites as a significant amount of certain metals and minerals present in the existing tailings, such as uranium, pyrite and sulphur are to be removed during re-processing of these tailings;
- reduced risk of erosion as the side slopes that will be built at a lower gradient and gradually vegetated as the facility is built;
- contours that will be more rounded to blend with the surrounding natural landscape;
- systems that will recycle and reuse the water used to transport the tailings to the new site wherever possible; and
- been built on impermeable soils, unlike the porous dolomites which host much of the historical tailings.
The older tailings deposits, that the TSF is replacing, are to be rehabilitated once the tailings from each such deposit are reprocessed. While the Company engages in appropriate discussions with public officials to address any and all queries that have arisen regarding the TSF, First Uranium continues to remain focused on its operations at both MWS and the Ezulwini Mine.
"First Uranium remains confident that this interruption in the development of the TSF will not diminish the Company's ability to execute its mine plans at both of its gold and uranium assets," explained Gordon Miller, President and CEO of First Uranium. "As with the development of all mines, there are operational issues to overcome. However, we anticipate that this development
with the new tailings storage facility will, in hindsight, be characterized as one example in a series of challenges that, once overcome, have brought two exceptional assets into full, long-life production." About First Uranium Corporation First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming a significant low-cost producer of uranium and gold through the expansion of the underground development to feed the new uranium and gold plants at the Ezulwini Mine and through the expansion of the plant capacity of the Mine Waste Solutions tailings recovery facility, both operations situated in South Africa. First Uranium also plans to grow production by pursuing value-enhancing acquisition and joint venture opportunities in South Africa and elsewhere.
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