23 Jun 2011 09:31
23 June 2011
Polo Resources Limited("Polo" or "the Company")
Polo to receive cash proceeds on disposal of Caledon interests of £100 million
Polo to declare special dividend of 1p per share upon completion
Polo Resources Limited (AIM/TSX: POL) notes the 2.5 announcement published with respect to an offer by Guangdong Rising (Australia) Pty Ltd ("GRAM") to acquire 100% of the issued shares of Caledon.
Polo holds an interest of approximately 29.8% in the issued share capital of Caledon in addition to £2.5 million of Caledon's 8.5% unsecured Convertible Loan Notes issued in 2010. Should GRAM complete its proposed acquisition of Caledon at the announced price of 112p per share, Polo will receive total proceeds on disposal of its interest of approximately £100 million equivalent to approximately 4.36p per issued Polo share.
Neil Herbert, Executive Co-Chairman and Managing Director of Polo said:
"The disposal of our interest in Caledon will provide the company with £100 million in additional liquidity. Subject to and upon completion of the sale and receipt of cash proceeds, the Board of Polo intends to utilise part of the proceeds to fund a special dividend to shareholders of 1p per share.
"Polo's strategy is to identify assets, listed and private, which have the potential to increase shareholder value.
"We are in the strong position of having cash to build on our portfolio of investments which includes; coal, iron ore and gold projects, which have the potential to deliver superior returns to shareholders."
Investment update:
Estimated proceeds from the sale of Caledon | £100.00 million | 4.36p |
Listed Investments[1] | £30.70 million | 1.34p |
Non Listed Investments[2] | £13.20 million | 0.58p |
Cash | £18.40 million | 0.80p |
Total | £162.30 million | 7.08p |
Note:
1. Share prices as at 21 June 2011.
2. At cost.
Contacts:
Polo Resources Limited
Neil L. Herbert, Executive Co-Chairman
Ian Burns, Finance Director
+ 27 82 404 36 37
Canaccord Genuity Limited
Andrew Chubb / Bhavesh Patel
+ 44 (0) 20 7050 6500
Toronto
James McVicar
Heenan Blaikie LLP
+1 416 643 6903
Blythe Weigh Communications
Tim Blythe
Ana Ribeiro
Matthew Neal
+44 (0) 20 7 138 3204
About the Company
Polo Resources is a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. The Company will primarily invest in companies with producing assets and/or resources and reserves that have been verified under internationally recognised reporting standards. For complete details on Polo Resources: www.poloresources.com.
CAUTIONARY STATEMENT
The AIM Market of London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding potential values, the future plans and objectives of Polo Resources Limited. There can be no assurance that such statements will prove to be accurate, achievable or recognizable in the near term.
Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Polo Resources Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.