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Tawana Resources - Non-Renounceable Rights Issue By The Company

Release Date: 13/04/2006 08:19:09      Code(s): TAW
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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