SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES DEVELOPMENTS REGARDING THE USE OF PROCEEDS FROM ITS 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 the period 18-11-2014 to 02-12-2014, where the received gross proceeds amounted to SAR 5.6 billion. As at 30/06/2016, the used proceeds were SAR 4,188 million and the remaining proceeds were SAR 874.5 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 of 30/06/2016 the Company used SAR 4,188 million from the proceeds as an equity contribution to Maaden Waad Al Shamal Phosphate Company. The remaining amount of SAR 874.5 million will be used to finance 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 5.06 billion.
Construction progress reached the following levels as of 30/06/2016G:
Completed 75.6% of the Beneficiation Plant compared to 9.2% as at 30/8/2014G, as stated in the prospectus.
Completed 86.0% of the Sulphuric Acid Plant compared to 25.7% as at 30/8/2014G, as stated in the prospectus.
Completed 82.7% of the Phosphoric Acid Plant compared to 12.6% as at 30/8/2014G, as stated in the prospectus.
Completed 97.7% of the Ammonia Plant compared to 14.6% as at 30/8/2014G, as stated in the prospectus.
Completed 66.1% of the Diammonium 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 then 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 is fully completed for Maaden Bauxite and Alumina Company project, as announced previously and the project is currently in the ramp-up stage as of 30/06/2016G 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.
For further information please contact: