Anooraq Resources Corporation announced that the Company and its controlling shareholder, the Pelawan Trust, are in advanced negotiations for the conclusion of a financing for the Company, in light of the current downturn in international equity markets.
The successful conclusion of these negotiations will result in Pelawan completing the unconditional exercise of all of the Pelawan warrants, referred to in the Company’s news release dated 24th December 2007, and the Company not effecting a general public offering of new Anooraq shares. In terms of the financing, the Company will still issue new Anooraq shares in an amount of approximately ZAR 150 million to the Company’s ESOP and Community trusts, referred to in the Company’s news release of 14th April, 2008.
The financing, together with the conclusion of the debt finance facility from Standard Chartered Bank, detailed in the Company’s news release of 20th May, 2008 will enable the Company to finance its acquisition of a 51% controlling interest in Lebowa Platinum Mines and its current 50-50 joint ventures with Anglo Platinum (“Lebowa transaction”).
In accordance with the definitive agreements for the Lebowa transaction, closing of the Lebowa transaction is targeted for no later than 30th November 2008.
Detailed terms of the financing, once finalised, will be announced by the Company once requisite consents for such financing have been obtained from the Department of Minerals and Energy, South Africa and other relevant parties.