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Tawana Resources - Non-Renounceable Rights Issue By The Company

Release Date: 13/04/2006 08:19
Code(s): TAW
Wrap Text

Tawana Resources - Non-Renounceable Rights Issue By The Company Tawana Resources NL (Incorporated in Victoria, Australia) (Registration number ACN 085 166 721) Share code on the JSE Limited: TAW & ISIN: AU000000TAW7 Share code on the Australian Stock Exchange Limited: TAW & ISIN: AU000000TAW7 ("Tawana" or "the Company") NON-RENOUNCEABLE RIGHTS ISSUE BY THE COMPANY 1. Introduction Further to the trading halt announcement published over the Securities Exchange News Service ("SENS") of the JSE on Wednesday, 12 April 2006, shareholders are hereby advised that the directors of Tawana ("the Directors") have resolved to undertake a non-renounceable rights issue on the basis of 1 new share for every 3 fully paid ordinary shares held on the Record Date ("rights issue"). 2. Rationale for the rights issue The Directors have undertaken an expenditure program review which highlighted the need to seek additional capital. To this end, the Directors have resolved to approach shareholders, through the rights issue, in order to seek to raise approximately A$7,5 million (before expenses). It is anticipated that the net proceeds raised from the rights issue, will be applied by the Company to fund exploration on existing tenements, the development of the Kareevlei Wes Project and working capital requirements of the Company. The rights issue is being fully underwritten by ABN AMRO Morgans Corporate Limited of Australia. 3. The rights issue The rights issue will seek to raise A$7,5 million (before expenses) to be allocated to Tawana"s projects in both South Africa and Australia as will be detailed in the Prospectus referred to in paragraph 5 below. As permitted by the Listing Rules of the Australian Stock Exchange ("ASX"), the rights issue will be non-renounceable. 4. Details and timing of the rights issue - As indicated, the rights issue will take place in the ratio of 1 new share for every 3 fully paid shares held at the close of business on Friday, 5 May 2006 ("Record Date"). In addition, shareholders will also be able to apply for new shares in excess of their allocated entitlement; such shares to be allocated at the discretion of the Directors. - The issue price for the new shares will be A$0.35 per share. The issue price payable for new shares by South African registered eligible shareholders will be R1,61 per new share being the Rand equivalent of A$0.35 as at 11 April 2006, being the last practicable date prior to the finalisation of the terms of this announcement. The Rand equivalent of A$0.35 has been set based on Standard Bank"s quoted selling rate for A$ - Cheques and Telegraphic Transfers. All subscription monies from South African shareholders will be retained for use in Tawana"s South African operations. - Subject to lodgment of a Prospectus with the Australian Securities Investment Commission ("ASIC") and satisfaction of JSE Limited ("JSE") requirements, the expected dates of the rights issue are as follows: 2006
Last day to trade in shares on the JSE in Wednesday, 26 April order to be entitled to participate in the rights issue South African public holiday Thursday, 27 April Last day to trade in shares on the ASX in Friday, 28 April order to be entitled to participate in the rights issue Shares of Tawana trade `ex" rights issue Friday, 28 April participation on JSE South African public holiday Monday, 1 May Shares of Tawana trade `ex" rights issue Monday, 1 May participation on ASX Record Date on ASX and JSE to determine shareholders of Tawana entitled to Friday, 5 May participate in the rights issue Rights issue opens and Prospectus and Entitlement and Acceptance Form dispatched Wednesday, 10 May to entitled Tawana eligible shareholders Rights issue closes as to acceptance and payment in South Africa at 12:00**** Wednesday, 24 May Updating by Computershare Investor Services 2004 (Pty) Limited of shareholders accounts and anticipated date for commencement of Friday, 2 June trading of new shares on JSE Notes: * All or any of the above dates are subject to change. Subject to the Australian Corporations Act, the ASX, the JSE and the ASIC, the Company reserves the right to vary any or all such dates as set out above. Any changes to the above dates will be communicated to shareholders in the appropriate manner as required by the ASX and in the case of the JSE, by release over SENS and by publication in the South African press. ** Shareholders are advised that trading in shares on the JSE in Tawana is settled within the STRATE environment five business days following a trade. *** In South Africa, no dematerialsation or rematerialisation of Tawana share certificates may take place from Friday, 28 April 2006 to Friday, 5 May 2006, both days inclusive. **** South African shareholders should note that although in the dematerialised environment payment usually takes place on delivery, in this instance, dematerialised shareholders will be required to make payment for their rights on or before 12:00 on the closing date of the rights issue, namely, Wednesday, 24 May 2006, with share delivery/updating of accounts only taking place on Friday, 2 June 2006. Dematerialised shareholders should consult with their CSDP or broker with regard to the deadline that the CSDP or broker requires payment to be made by. 5. Documentation regarding the rights issue It is anticipated that the Prospectus and Form of Entitlement and Acceptance currently being prepared in Australia, providing detailed information on the rights issue will, subject to lodging of the Prospectus with ASIC and, from a Corporate Actions perspective, the JSE, and required approval of the South African Reserve Bank, be dispatched to South African registered shareholders on or about 10 May 2006. Eligible shareholders should note that they will be required to complete the Entitlement and Acceptance Form in order to acquire share in terms of the rights issue. 6. Recommencement of trading As the terms of the rights issue is now finalised, trading in the shares of Tawana will commence from opening of trade today on the JSE. For enquiries contact: Wolf Marx Andrew H Smith Mobile: 0961 428 398446 Investor Relations Manager wolf.marx@tawana.com.au Telephone 0961 08 8276 8794 Facsimile 0961 08 8357 5052 Mobile 0417 265 205 Email andrew.smith@tawana.com.au 13 April 2006 Representative Office: Kimberley South African Sponsor to Tawana: PricewaterhouseCoopers Corporate Finance (Pty) Limited All press releases and announcements may be inspected on the Company"s web site, namely: www.tawana.com.au Date: 13/04/2006 08:19:17 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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