24 Jan 2011 07:00
24 January 2011
Strategic Natural Resources PLC
("SNR" or the "Company")
Update re Restructure of Black Economic Empowerment Partnership
Further to the announcement made by the Company on 11 November 2010, the Board of Strategic Natural Resources plc (AIM:SNRP) is pleased to announce that the Company has completed the restructuring and consolidation of the black economic empowerment ("BEE") shareholding in its 74 per cent. owned subsidiary, Elitheni Coal (Pty) Limited ("Elitheni"), with its new BEE partner, Rapitrade 644 (Pty) Ltd (''Rapitrade''). SNR has also received £1,300,000 as consideration for the subscription to 10m new ordinary shares of 1 pence in the Company at a price of 13p per share (the "Rapitrade Shares"), in accordance with the terms of the agreement with Rapitrade which afforded Rapitrade, or a company nominated by Rapitrade, the right to subscribe for these shares in SNR.
SNR's wholly owned subsidiary, Acharnian Mining Limited ("Acharnian") has, as part of this restructuring, completed the sale of the remaining 22 per cent. of its holding in Elitheni to Rapitrade. This 22% was formerly held by Vuwa Investments (Pty) Limited ("Vuwa") (17 per cent.) and Mr. Christopher Mazizandile Msutu ("Mr Msutu") (5 per cent.). The consideration of ZAR 22,000,000 (approximately £2,001,000) (the "Sale Price") has been satisfied by Rapitrade by the payment to Acharnian of ZAR 15,000,000 (approximately £1,370,000) in cash and a simultaneous loan of ZAR 7,000,000 (approximately £637,000) from Acharnian to Rapitrade. The terms of this loan include an interest rate equal to the three month LIBOR plus 1.5 per cent, with accrued interest to be rolled up with the principal. Upon Elitheni declaring a dividend, Rapitrade will apply 50 per cent. of its share of that dividend towards discharging the outstanding loan balance.
Rapitrade has entered into an agreement with Mr Msutu which allows him to acquire a portion of the stake in the Company owned by Rapitrade. Mr Msutu will continue fulfilling the role of Elitheni's Director of stakeholder management.
Acharnian now owns 74 per cent. of Elitheni and Rapitrade and Vuwa each own 22 per cent. and 4 per cent. respectively.
Application has been made for the Rapitrade Shares in SNR to be admitted to trading on AIM ("Admission") and it is expected that Admission will take place on or around 27 January 2011. On Admission the Rapitrade Shares will represent 9.61 per cent. of the enlarged share capital of SNR and will be registered in the name of Cooch 1095 Limited. The total enlarged issued share capital of SNR following Admission will be 104,103,333 ordinary shares of 1 pence each in the Company. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.
ends
For further information, please contact:
Strategic Natural Resources plc. | |
David Nel, Chief Executive Officer | +44 (0) 20 7793 5616 |
Jeremy Metcalfe, Communications Director | +44 (0)7785 346 718
|
Nominated Adviser and Joint Broker | |
Allenby Capital Limited | |
Nick Naylor / Alex Price
| +44 (0) 20 3328 5661 |
Investor Relations Financial Dynamics Billy Clegg / Oliver Winters
| +44 (0)207 831 3113 +44 (0)77 0332 9024 |
Joint Broker | |
SP Angel Corporate Finance Limited | |
Emin Eyi / Tercel Moore | +44 (0) 207 647 9646 |
For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk.
About Black Economic Empowerment
Black Economic Empowerment is a programme launched by the South African government with the aim of redressing the inequalities of Apartheid by giving previously disadvantaged groups economic opportunities previously not available to them. It includes measures such as Employment Equity, skills development, ownership, management, Socioeconomic development and preferential procurement.