AMI.L Regulatory News (AMI)

25 Jan 2010 07:00



NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

For immediate release 25 January 2010

African Minerals Limited

("African Minerals", "AML" or the "Company")

Underwritten Cash Placing of £80 million (US$130million)

Reallocation of related party's participation

On 21 January 2010, the Company announced an underwritten cash placing of 20,000,000 new common shares of the Company ("New Shares") at 400 pence per share to raise £80million, before expenses (the "Placing Announcement").

On 22 January 2010, the Company was informed by the Underwriters that, as a result of an allocation to additional purchasers, the participation, directly and/or on behalf of managed accounts of Dundee Corporation and certain of its subsidiaries ("Dundee"), had been reduced by 900,000 New Shares from 8.37 million New Shares to 7.47 million New Shares. As a result, the total consideration payable by Dundee for the New Shares has been reduced from £33.5 million to £29.9 million.  Dundee Securities Corporation, an indirect subsidiary of Dundee Corporation, will continue to receive a fee of £1.2 million as an Underwriter.

As described in the Placing Announcement, Dundee has notified the Company that it owns or has control or direction over an aggregate of 16,969,738 common shares of the Company, representing 7.9% of the Company's issued share capital. In addition, Murray John, who is Chief Executive of Dundee Resources Limited, a subsidiary of Dundee Corporation, is a director of African Minerals.  As described in Note 1 to the Placing Announcement, the Company therefore considers Dundee Corporation to be a Related Party under the AIM Rules.  The Directors of the Company consider, having consulted with its nominated adviser, Canaccord Adams Limited, that, notwithstanding the change in the underwriting participation of Dundee described above, the terms of the transaction with Dundee continue to be fair and reasonable insofar as shareholders are concerned.

Following the Placing, but excluding the CRM Option described in the Placing Announcement, and as a result of the reduction in Dundee's participation, Dundee Corporation, directly and/or through accounts managed by Ravensden Asset Management Inc., a direct subsidiary of Dundee Corporation, will own or have control or direction over an aggregate of 15,530,000 common shares of the Company, representing an approximate 6.65% interest. In addition, accounts managed by Goodman & Company, Investment Counsel Ltd., an indirect subsidiary of Dundee Corporation, will have control or direction over 8,912,738 common shares of the Company, representing an approximate 3.81% interest in the share capital of the Company.

Enquiries: 

Notes: