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TAW - Tawana - Renounceable Rights Issue
Tawana Resources NL
(Incorporated in 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")
20 February 2008
RENOUNCEABLE RIGHTS ISSUE
1. Introduction
Shareholders are hereby advised that the directors of Tawana ("the
Directors") have resolved to undertake a renounceable non-underwritten
rights issue ("rights issue") on the basis of 1 new share and 1 new option
for every 4 fully paid ordinary shares held on the Record Date to issue up
to 23,099,370 shares and 23,099,370 options.
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$1.8 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, Tawana Alluvials Projects and working
capital requirements of the Company.
The Lead Manager of the rights issue is Patersons Securities Limited.
3. The rights issue
The rights issue will seek to raise A$1.8 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 renounceable.
4. Details and timing of the rights issue
As indicated, the rights issue will take place in the ratio of 1 new share
and 1 new option for every 4 fully paid shares held at the close of
business on Friday, 7 March 2008 ("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$0.08 per share. The issue
price payable for new shares by South African registered eligible
shareholders will be R0.57 per new share being the Rand equivalent of
A$0.08 as at 18 February 2008, being the last practicable date prior to the
finalisation of the terms of this announcement. The Rand equivalent of
A$0.08 has been set based on Standard Bank`s quoted selling rate for A$ -
Cheques and Telegraphic Transfers. All subscription monies from South
African shareholders will be retained for use in Tawana`s South African
operations.
The new options will be issued free of charge on the basis of 1 new option
for every new share issued and will be exercisable at A$0.10 on or before 1
April 2011.
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:
As the new shares and new options acquired as a result of the Rights Offer
will only be issued on 1 April 2008, those shares and options may only be
traded in South Africa from 25 March 2008, for settlement five (5) business
days later.
Corporate Action ASX JSE
Board meeting to approve 19 February 2008
Rights Issue and (evening EDST)
announcements on ASX and JSE
ASX Announcement / 20 February 2008 20 February 2008
Declaration date (before (before
commencement of commencement of
trade) trade)
Lodge Appendix 3B with ASX 20 February 2008
(before
commencement of
trade)
Send Appendix 3B letter and 26 February 2008
Options Notice to
Option/Shareholders
Lodge Prospectus 27 February 2008 27 February 2008
Last day to trade in Shares 29 February 2008 29 February 2008
in order to be entitled to
participate in the Rights
Issue
Shares trade "ex-rights" and 3 March 2008 3 March 2008
Rights trading commences
Record Date to determine 7 March 2008 7 March 2008
entitlements under the Rights
Issue
Offer opens - Prospectus and 12 March 2008 12 March 2008
Application Form despatched
Last day of Rights trading 19 March 2008 19 March 2008
Listing and trading of New 25 March 2008
Shares and New Options on JSE
Closing Date for acceptances 28 March 2008 28 March 2008
(5.00pm EDST) (12.00 Midday)
Notify ASX of 1 April 2008
undersubscriptions
Publish results announcement 1 April
on JSE
Allotment of New Shares and 1 April 2008 1 April
New Options
Despatch of holding 3 April 2008 3 April 2008
statements for New Shares and
New Options
Trading of New Shares and New 4 April 2008
Options
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 Monday, 3 March 2008 to Friday, 7 March
2008, 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,
Friday, 28 March 2008, with share delivery/updating of accounts only taking
place on Tuesday, 1 April 2008. 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 registered
shareholders on or about 12 March 2008. Eligible shareholders should note
that they will be required to complete the Entitlement and Acceptance Form
in order to acquire shares in terms of the rights issue.
Contact:
Wolf Marx
Tel: +61 (0)3 98635222
Mob: +61 (0)428 398446
Email:wolf.marx@tawana.com.au
This article can be viewed on the Company`s website at www.tawana.com.au
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 20/02/2008 11:44:01 Supplied by www.sharenet.co.za
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