Aflease accelerates uranium feasibility study
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In line with its strategy to realise the value in its world-class uranium resource, South African miner Afrikander Lease (Aflease) has approved an increase in the scope of its uranium feasibility study to ensure that production can begin at the end of 2006.
As a result, the cost of the feasibility study has increased from R15-million to R21-million. The company also approved the restarting of exploration activities at Modder East, the Bonanza Basin and at the Afrikander gold deposits.
In terms of the required funding to facilitate the revised feasibility study, the early stages of the uranium project and exploration activities, the group has successfully concluded two issues of shares for cash totalling 27 720 041 new Aflease ordinary shares (new Aflease shares). These included the issue of 12 974 884 new Aflease shares on October 27 and a further 14 745 157 new Aflease shares issued on December 3.
The new Aflease shares constitute 12,91% of the issued share capital of the group prior to June 28, the date the general authority was passed by shareholders.
The new Aflease shares were issued at an average price of R1,74 a share, which equates to a 0,56% discount to the weighted average traded price of Aflease shares on the JSE Securities Exchange for the 30 business days prior to the respective share issue dates. The new Aflease shares will rank pari passu with the existing ordinary shares of the group and application has been made to list the new Aflease shares on the JSE from December 10.
In addition, Aflease has entered into a number of private share placements with various funds in Europe and the US to fund the increased cash flows required by the group. These funds include RAB Capital (UK), Midas Natural Resources (UK), Firebird Global Fund (US) and more recently Sprott Asset Management of Canada, which has acquired 3,8% of Aflease, through an investment of R21,9-million ($3,7-million).
“We are confident about the group's outlook. We now have sufficient funds and additional quality partners in place to ensure we can expedite our strategy of creating a focused uranium company,” said Aflease CEO Neal Froneman.
“The recent investment from Sprott Asset Management, together with the support from other international funds, is a vote of confidence in our plans to start mining uranium and maximising value from our other assets.”