Last checked at 17 Sep 2012 17:23
17 September 2012
Watermark Global Plc
("Watermark" or "Company")
Correction to Announcement of 13 September 2012 at 08.39
Watermark Global Plc (AIM: WET), a company listed on AIM with a focus on Acid Mine Drainage treatment and coal briquetting in South Africa, provides a correction to the update on the development of its associate company, Mine Restoration Investments Limited ("MRI"), which is listed on the Johannesburg Stock Exchange.
The figure mentioned for the proceeds of sale of shares in MRI should have referred to an average sale price of R0.193 not R0.25 as stated and the announcement should have stated that the interest figure quoted was that which the Company expects to earn by the extended maturity date of 12 January 2013.
The corrected announcement should read as follows:
Operations
The implementation of MRI's Coal Briquetting project is progressing well and first production is anticipated by February 2013. The pilot briquetting plant will be moved to site in the next few weeks in order to commence production of sample batches for final off-take evaluation and specification. This information is required under the existing off-take agreement to enable potential consumers to evaluate the product. By implementing the pilot plant ahead of the main production facility, MRI will be in a position to assess market requirements and make final adjustments to the process before entering into full production.
Financing
Watermark signed a loan agreement with Trinity Asset Management (Pty) Ltd ("TAM") as part of the capital raising process when listing MRI in June 2012. Under the loan agreement, TAM agreed to place approximately 105 million MRI shares by 12 September 2012 in order to repay the loan. Watermark also had the option of taking ownership of any of the MRI shares not placed by 12 September 2012 or to sell them. Should Watermark sell the shares at a value of more than R0.20 per share, Watermark would receive 50% of the additional value.
To date TAM has successfully placed approximately 25% of the shares at an average price of R0.193 per share, a R0.003 per share premium to the price of R0.19 at which they were valued for the purposes of the loan. The mid-market price of shares in MRI was R0.28 at close of business on 12 September 2012. In view of the fact that MRI shares continue to trade at a premium to their issue price, the placement date for the balance of the shares has been extended to 12 January 2013 (by which time the Company expects to have earned interest of R1.1million in total). TAM is proposing to place the balance of the MRI shares with strategic investors in South Africa but in view of the strengthening prospects of MRI and the price at which MRI shares are trading the Watermark Board will keep the position regarding the remaining MRI shares under review and may elect to take ownership of them. A further update will be provided as appropriate.
Enquiries
Watermark Global plc Peter Marks, Chairman Tel: + 44(0) 20 7233 1462Jaco Schoeman, Non-Executive Director Tel: + 44(0) 20 7233 1462
Investor Relations Charles Zorab Tel: + 44(0) 20 7233 1462czorab@watermarkglobalplc.com
Nominated Adviser: Cenkos Securities Ian Soanes
Copyright Business Wire 2012