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Kalahari Minerals (KAH)

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Friday 01 May, 2009

Kalahari Minerals

Placing to raise approximatel

RNS Number : 6393R
Kalahari Minerals PLC
01 May 2009
 



Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration

1st May 2009

Kalahari Minerals plc ('Kalahari' or 'the Company')

Placing to raise approximately £17.89 million


Kalahari Minerals plcthe 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.


* * ENDS * *


For further information please visit www.kalahari-minerals.com or contact:

Mark Hohnen

Kalahari Minerals Plc

Tel: +61 (0) 8 9389 4488

Olly Cairns

Blue Oar Securities Plc

Tel: +61 (0) 86430 1631

Andrew Raca

Blue Oar Securities Plc

Tel: +44 (0) 20 7448 4400

Richard Chase  

Ambrian Partners

Tel: +44 (0) 20 7634 4700

Rory Scott

Mirabaud Securities LLP

Tel: +44 (0) 20 7878 3360

Hugo de Salis

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Susie Callear

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177


Notes to Editors:


Information relating Kalahari


Kalahari Minerals Plc is an AIM listed mining and exploration group with a portfolio of copper, base metal and uranium interests in western and eastern central Namibia.


The Company's key investment is its current 38.68% holding in ASX and TSX listed Extract Resources. Extract's main focus is the Husab uranium project in Namibia, which contains three main prospects, Rossing South, Ida Dome and Hildenhof, and is located directly south of Rio Tinto's producing Rossing Mine.  At Rossing South, an initial resource estimate of 108 M lbs of U3O8 at a grade of 430 ppm was announced in January 2009 for Zone 1, whilst at Ida Dome, a 25.1 M lbs of U3O8 has been defined, effectively giving Extract a total resource of 133.1 M lbs.  The Zone 2 resource is expected to be announced in summer 2009, which should once again expand Extract's quantified resource base. Results from an ongoing drilling programme reinforce the Company's belief that the area has a strong potential to host a world class uranium deposit.


Kalahari's copper interests are focussed on two project areas, Dordabis and Witvlei, which are prospective for sediment hosted copper mineralisation consistent with the world class Zambian Copper Belt.  A third project, Ubib, is believed to be prospective for gold mineralisation and is located close to the operating Navachab gold mine.


The Company also has a 100% interest in the highly prospective Namib Lead Zinc Project centred on the old Namib Lead Mine, which was an underground operation from 1965 - 1992.  Previous mine studies (non JORC compliant) indicate surface tails and underground mining reserves of 1.65 million tonnes at 5.7% zinc, 1.6% lead and 40.2 g/t silver.  Kalahari aims to take the project to bankable feasibility study stage with a view to recommencing mining operations in the short term.


Information relating to Extract


Extract Resources Limited is an Australian-based uranium exploration company whose primary focus is in the African nation of Namibia.  Extract's principal asset is its 100%-owned Husab Uranium Project which contains three known uranium targets: Ida Dome; Hildenhof; and Rossing South.  Rossing South represents Extract's first new discovery in this area. Extract is listed on the ASX and the TSX under the ticker symbol 'EXT'.  For more information on Extract visit www.extractresources.com.


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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