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16 Jan 2013 11:22
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The issuer advises that the following replaces the Watermark Global Update announcement released at 10:12 GMT today.
There has been an amendment to the first sentence of the last paragraph.
All other details remain unchanged.
The full corrected version is shown below.
Update
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 of approximately £1.4 million. Should Watermark sell the shares at a value of more than R0.20 per share, Watermark would receive 50% of the additional value. Watermark also had the option of taking ownership of any of the MRI shares not placed by 12 September 2012. Interest accrues on the loan at 2% above prime rate in South Africa. This agreement was subsequently extended to 12 January 2013.
In view of the strength of the prospects of MRI and the fact that MRI shares continue to trade at a premium to their issue price the Board of Watermark is keen to preserve the option of receiving repayment of the loan in cash or taking ownership of the MRI shares. It has therefore extended the date for the placement of the balance of the shares and repayment of the loan to 12 April 2013. The Watermark Board will keep the position regarding the remaining MRI shares under review and a further update will be provided as appropriate.
In terms of operations at MRI, the Department of Water Affairs ("DWA") recently requested interested parties to register with DWA if they intend submitting proposals for the long-term solution to treatment of AMD arising in the Western, Central and Eastern Basins by 31 January 2013 and this MRI fully intends to do through its wholly-owned subsidiary, Western Utilities Corporation Limited. An update concerning the coal briquetting project is expected from MRI later this month.
Enquiries
Investor Relations
Charles Zorab Tel: + 44(0) 20 7233 1462czorab@watermarkglobalplc.com
Nominated Adviser: Cenkos SecuritiesIan Soanes/Ivonne Cantu Tel: +44(0)20 7397 8900
Copyright Business Wire 2013
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