Vancouver, Canada — MININGREVIEW.COM — 23 May 2008 – Anooraq Resources Corporation – a Canadian-incorporated BEE company focused on platinum group metals (PGM) on the Bushveld Complex – has executed a binding, credit-approved term sheet with Standard Chartered Bank to provide sole underwritten debt finance for acquisition of controlling interest in the Lebowa platinum mine.
A company news release issued here confirms that in terms of the agreement, Standard Chartered will provide sole underwritten debt finance of up to R1.7 billion for the acquisition by the company of an effective 51% of Lebowa Platinum Mines from Anglo Platinum Limited.
Anooraq has agreed to acquire Lebowa for an aggregate cash consideration of R3.6 billion, and the company intends to fund the purchase price through a combination of debt and equity. The exercise of share purchase warrants by Pelawan Investments (Pty) Ltd in December 2007, in an aggregate amount of R 1.586 billion, will provide a portion of the funds required by Anooraq for this purpose.
In addition Pelawan – the majority shareholder in Anooraq – has advised that it has executed a credit-approved term sheet with Standard Chartered to provide Pelawan with sole underwritten acquisition debt finance of up to R700 million. Pelawan will apply these funds towards refinancing its existing bridge loan facility with Rand Merchant Bank.
Acting Anooraq president and CEO, Tumelo Motsisi commented: “We are pleased to have obtained sole underwritten and significant debt finance from a major international bank, bearing testament to the underlying quality of the asset base we are acquiring from Anglo Platinum. This debt financing package is part of Anooraq’s acquisition finance strategy and not only is it a rousing endorsement for our Lebowa acquisition, but it also represents a major step towards implementation of the Lebowa transaction.”