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BAU - Bauba Platinum Limited - Bauba Platinum successfully raises R50 million to fund exploration BAUBA PLATINUM LIMITED (formerly Absolute Holdings Limited) Incorporated in the Republic of South Africa (Registration number 1986/004649/06) Share code: BAU ISIN: ZAE000145686 ("Bauba Platinum" or "the Company") BAUBA PLATINUM SUCCESSFULLY RAISES R50 MILLION TO FUND EXPLORATION The board of directors of Bauba Platinum ("the Board") is pleased to advise shareholders that Bauba Platinum has raised an amount of R50 million by way of an issue of 27 777 778 ordinary shares for cash to further fund its key platinum exploration projects on the Eastern Limb of the Bushveld. The Company has entered into a Subscription Agreement ("the Agreement") in terms of which Trinity Asset Management (Proprietary) Limited ("Trinity Asset Management"), or its nominee, will subscribe for 27 777 778 new Bauba Platinum ordinary shares ("the Subscription Shares") at an issue price of R1.80 per share which constitutes 22.8% of the fully diluted issued share capital of Bauba Platinum ("the Subscription"). The issue price of the Subscription Shares represents a discount of 4% to the 30 day volume weighted average price of R1.87 per ordinary share as at 27 June 2011. In terms of paragraphs 4.25 and 4.26 of the Listings Requirements of JSE Limited ("the JSE"), Trinity Asset Management is deemed to be a `public shareholder`, and not a related party as defined in section 10 of the JSE Listings Requirements. The R50 million has been raised pursuant to the authority to raise up to R150 million through the issue of 30 000 000 new ordinary shares granted to the Board at the general meeting of the Company held on 7 June 2010, and the general authority granted to the Board at the annual general meeting of the Company held on 19 October 2010, by the requisite majority of Bauba Platinum shareholders in accordance with paragraphs 5.51 and 5.52 of the JSE Listings Requirements. The Subscription Shares are expected to be listed on the JSE by the 22 July 2011 and will rank pari passu with the existing ordinary shares of the Company. Bauba Platinum will use the funding to expedite its exploration drilling programme on the Southern and Central clusters of its Eastern Limb concessions with the principal objective being the delineation of an inferred resource over these areas. Bauba Platinum`s Chief Executive Officer, Grant Pitt, comments: "This investment, by Trinity Asset Management, is an important step forward as it supports the inherent value opportunity within Bauba Platinum and shows confidence in our assets and the Company`s intended strategy going forward." Trinity Asset Management Chief Executive Officer, Quinton George, said, "Given the increase in supply pressures currently being experienced in the platinum group metals market, Bauba Platinum represents a comparatively inexpensive entry point into the platinum industry for our investors. The significant targeted resource base of Bauba Platinum together with the strategic location of its prospecting rights provides value creation opportunities for investors through both the development of the Company`s current resource base and through regional consolidation." The table below sets out the unaudited pro forma financial effects of the Subscription on Bauba Platinum`s loss per share, headline loss per share, net asset value per share and tangible net asset value per share. The unaudited pro forma financial effects have been prepared to illustrate the impact of the Subscription on the reviewed interim results for the six months ended 31 December 2010, had the Subscription occurred on 1 July 2010 for statement of comprehensive income purposes and on 31 December 2010 for statement of financial position purposes. The unaudited pro forma financial effects have been prepared using accounting policies that comply with International Financial Reporting Standards and that are consistent with those applied in the reviewed interim results of Bauba Platinum for the six months ended 31 December 2010 and the annual financial statements for the year ended 31 June 2010. The unaudited pro forma financial effects, which are the responsibility of the Board, are provided for illustrative purposes only and, because of their pro forma nature may not fairly present Bauba Platinum`s financial position, changes in equity, results of operations or cash flow. Before the Pro forma Change Subscription after the (%) Subscription
Loss per share (cents) (33.1) (25.6) (22.6) Headline loss per share (cents) (32.2) (24.9) (22.6) Net asset value per share (cents) 41.0 71.4 74.2 Net tangible asset value per share 34.3 66.3 93.5 (cents) Weighted average number of shares in 93 787 119 121 564 897 29.6 issue Total number of share in issue at 90 509 588 118 287 366 30.7 period end Notes: 1 The "Before the Subscription" loss and headline loss per share have been extracted without adjustment from the reviewed published results of Bauba Platinum for the six months ended 31 December 2010. The "Before the Subscription" net asset value and tangible net asset value per share have been calculated from the financial information presented in the reviewed published results of Bauba Platinum for the six months ended 31 December 2010. 2 The "Pro forma after the Subscription" assumes: a The issue of 27 777 778 new Bauba Platinum ordinary shares at R1.80 per share; b Transaction costs of R2.6 million; and c The proceeds will be utilised for capital expenditure and working capital and will therefore not affect earnings for the period. Losses per share, however, will be diluted by the new number of shares in issue. 3 The effects on loss per share and headline loss per share are calculated based on the assumption that the Subscription was effected on 1 July 2010. 4 The effects on net asset value per share and tangible net asset value per share are calculated based on the assumption that the Subscription was effected on 31 December 2010. Fourways, Johannesburg 5 July 2011 Corporate advisor Sponsor Qinisele Resources (Proprietary) Limited Merchantec Capital Date: 05/07/2011 17:26:16 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
