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ST BARBARA LIMITED Capital/Financing Update 2005
65749_rns_2005-10-16_037b1fde-9628-4ec3-a429-ff74c45ed991.pdf
Capital/Financing Update
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St Barbara Mines Limited
ASX SHAREHOLDERS REPORT
Enquiries regarding this report may be directed to:
Eduard Eshuvs Managing Director & CEO
St Barbara Mines Limited ACN 009 165 066 Level 2, 16 Ord Street West Perth WA 6005 Telephone $+61894765555$ Facsimile -61 8 9476 5500 Email [email protected] Website www.stbarbara.com.au
Sale of South Laverton
The Company has concluded the sale of its South Laverton assets at an approximate value of \$16.7M, to Saracen Mineral Holdings Limited ("Saracen").
The terms of the sale are:
- Cash payment to the Company by Saracen of \$4.0M which includes a non-refundable deposit of \$500,000 which has been paid, and a further non-refundable deposit of \$500,000 payable on completion of due diligence:
- Replacement by Saracen of the Company's Environmental Performance Bonds to a value of \$9.2M. St Barbara will receive a benefit of up to \$3M cash for rehabilitation already completed and in progress; and
- The issue to the Company of shares by Saracen of 19.9% of the proposed enlarged and consolidated issued capital of Saracen following a planned equity raising of \$7.9M. Indicatively this will be 17.5M shares at 20¢ each for \$3.5M.
The completion of the sale is subject to a 20 day due diligence period and Saracen obtaining all necessary shareholder and regulatory approvals. Saracen is conducting the capital raising and re-compliance in accordance with Chapters 1 and 2 of the ASX Listing Rules. Completion is scheduled for 14 February 2006.
The South Laverton assets sold include tenements, the Carosue Dam treatment plant and associated infrastructure. These were acquired by St Barbara in March 2005 as part of the acquisition of the gold division of Sons of Gwalia Ltd (Administrators Appointed). Mining operations at Carosue Dam ceased, in line with schedule, in August 2005.
The Company's shareholding of 19.9% in Saracen will allow St Barbara to retain exposure to the South Laverton landbank, while the Company's Environmental Performance Bonds will be reduced from \$35.7M to \$26.5M.
Eduard Eshuvs Managing Director & CEO
14 October 2005