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Pallinghurst Resources Announces Completion of Tshipi/Jupiter Transaction
HAMILTON, Bermuda – 09 November, 2010 – The Directors of Pallinghurst Resources Limited (the “Company”; Ticker: PALLRES.BH) release a market announcement.
Further to the announcements dated 1 March, 2010 and 16 August, 2010, the Directors are now pleased to announce that as the conditions precedent have been satisfied and all contractual obligations have been met, the Company has completed the transaction exchanging its indirect interest in Tshipi é Ntle Manganese Mining (Pty) Ltd (“Tshipi") for new shares in Jupiter Mines Limited (“Jupiter”) (the “Transaction”).
Estimated fair value gain on completion of the Transaction
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Number of Jupiter shares acquired |
Closing Jupiter share price in AUD on 8 November 2010 |
US$/AUD exchange rate on 8 November 2010 |
Amount US$ | |
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Fair value of 7.71% equity interest in Tshipi, loans and cash vended into Jupiter |
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(27,156,456) | ||||||
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Fair value of Jupiter shares received |
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200,264,526 |
0.390 |
1.015 |
79,302,830 | |||
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Total fair value gain on the Transaction |
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52,146,374 | ||||||
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Estimated transaction costs |
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(300,000) | |||
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Total fair value gain on the Transaction less estimated transaction costs |
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51,846,374 | ||||||||
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The estimated transaction costs are likely to change, as the amount of these costs has not yet been finalised. Any variation in transaction costs will not be material to Pallinghurst.
The key differences between the financial effects of the Transaction as disclosed on 16 August, 2010, and the impact as disclosed above are the variance in the Jupiter share price (AUD0.270 per share on 12 August, 2010), and the variance in the US$/AUD exchange rate (from US$0.902/AUD1 on 12 August, 2010 to US$1.015/AUD1 on 8 November, 2010).
Completion of POSCO transaction
In terms of the POSCO transaction which was announced on 4 June, 2009, the Company received US$6,867,477, which was previously being held in escrow in return for part of its interest in Tshipi, on 4 November, 2010. Accordingly the POSCO transaction is now complete. The transaction has had no impact on the Company’s net asset value or earnings.
BSX Sponsor:
Michael Schroter, First Bermuda Group (441) 295-1330