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TAW - Tawana - Renounceable Rights Issue

Release Date: 20/02/2008 11:44:01      Code(s): TAW
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 
    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     
    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                             
                                   commencement of                              
Send Appendix 3B letter and    26 February 2008                             
    Options Notice to                                                           
    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                                                   
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                                               
    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                                 
    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                                 
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.                    
Wolf Marx                                                                       
Tel: +61 (0)3 98635222                                                          
Mob: +61 (0)428 398446                                                          
This article can be viewed on the Company`s website at www.tawana.com.au        
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 20/02/2008 11:44:01 Supplied by www.sharenet.co.za                     
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