SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES DEVELOPMENTS REGARDING THE USE OF PROCEEDS FROM THE RIGHTS ISSUE SHARES SUBSCRIPTION
Saudi Arabian Mining Company (Maaden) announces the developments of the use of proceeds from its rights issue shares subscription, which was held during 18-11-2014 to 02-12-2014, where the received gross proceeds amounted to (SAR 5.6) billion. As at 31/3/2015, the used proceeds were SAR 1,804 million and the remaining proceeds were SAR 3,796 million.
The expenses details and projects progress percentages compared with what was declared in the rights issue prospectus are as follows:
1. Offering Expenses:
Offering expenses were SAR 23.9 million as compared to (SAR 21) million stated in the rights issue prospectus. The reason for the increase in offering expenses was the increase in advisory fees from those estimated.
2. Maaden Waad Al-Shamal Phosphate Company:
As stated in the prospectus, the Company used (SAR 1,263) million from the proceeds as at 31/03/2015, to repay outstanding amounts under its redrawable murabaha finance facility which had been temporarily used to fund costs incurred by Maaden Waad Al Shamal Phosphate Company. The remaining amount (SAR 3,799) million will be used to complete financing the companys equity investment in the project. The total amount to be used from the offering proceeds to fund the Maaden equity investment in Maaden Waad Al Shamal Phosphate Company as per the prospectus will be (SAR 5,062) million.
Construction progress reached the following levels as of 31/03/2015G:
Completed 18.2% of the Beneficiation Plant compared to 9.2% as at 30/8/2014G, as stated in the prospectus.
Completed 41.4% of the Sulphuric Acid Plant compared to 25.7% as at 30/8/2014G, as stated in the prospectus.
Completed 34.7% of the Phosphoric Acid Plant compared to 12.6% as at 30/8/2014G, as stated in the prospectus.
Completed 47% of the Ammonia Plant compared to 14.6% as at 30/8/2014G, as stated in the prospectus.
Completed 28.6% of the Daimmonium phosphate (DAP) Plant compared to 8.0% as at 30/8/2014G, as stated in the prospectus.
3. Maaden Bauxite and Alumina company:
As stated in the prospectus, the Company used (SAR 509) million of the proceeds from the offering as at 31/03/2015, to repay amounts currently outstanding under its redrawable murabaha finance facility which had been temporarily used to fund costs incurred by Maaden Bauxite and Alumina Company and (SAR 7) million to fund the balance of its equity contribution to the project.
Construction progress completed for Maaden Bauxite and Alumina Company project as of 31/03/2015G was 99% compared to 94.69% completion as of 29/08/2014G as mentioned in the prospectus.
Any other material developments will be announced in due course.
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