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ST BARBARA LIMITED Capital/Financing Update 2003
65749_rns_2003-09-21_33e113c7-c9f2-472a-ac0b-eb791a1558b9.pdf
Capital/Financing Update
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ST BARBARA MINES LIMITED
ACN 009 165 066
$\overline{ASX}$ SHAREHOLDERS REPORT
Enquiries regarding this report may be directed to: Stephen W. Miller Executive Chairman Telephone (08) 9476 5555 +61 8 9476 5555 Overseas or Colin G. Jackson Investor Relations Telephone 0417 929 107
St Barbara Mines Limited Level 2, 16 Ord Street West Perth Western Australia 6005 Telephone $(08) 9476 5555$ Overseas +61 8 9476 5555
Dollar values in this report are Australian dollars unless otherwise stated.
Debt Retirement and Board Expansion
Resource Capital Funds II LP (Denver, Colorado, USA), a provider of credit and a supporter since January 2002, has agreed to convert its entire term facility ($7.3 million) into equity, thereby extinguishing all secured debt from the St Barbara balance sheet.
The debt to equity swap will result in the issue to Resource Capital Funds of 92 million shares at 8 cents per share, taking its shareholding from a current 7.9 percent to approximately 23 percent of an enlarged capital base. The transaction is subject to shareholder approval at the annual general meeting – the annual report and notice of meeting (including an explanatory statement on all resolutions) will be mailed out shortly. The transaction is also subject to Resource Capital Funds obtaining various approvals including the Foreign Investment Review Board.
The Board will also appoint two new directors, one of whom will be a non-executive Chairman, in recognition of best corporate governance practice, separating the Chairman and Managing Director roles. Mr Stephen Miller will continue as Group Managing Director to lead the recommencement of the gold production phase accelerated by the debt reduction.
The strengthened balance sheet will facilitate opportunities to progress the development of Paddys Flat high grade orebodies and the re-engineered Paulsens project through St Barbara's 88.3 percent owned subsidiary, Taipan Resources NL.
Stephen W. Miller Executive Chairman
22 September 2003