Intrepid Mines Limited

Intrepid Mines Limited

August 16, 2012 08:00 ET

Intrepid Mines Limited: First Tranche of Share Placement to Surya Paloh Completed

BRISBANE, AUSTRALIA--(Marketwire - Aug. 16, 2012) - Intrepid Mines Limited ("Intrepid", the "Company") (TSX:IAU)(ASX:IAU) reports the completion of the share issue and the first of two potential tranches of performance rights regarding the previously announced placement of 27,680,017 ordinary shares of the Company's expanded issued capital, to prominent Indonesian businessman, Surya Paloh ("Subscriber") (see Intrepid announcement of 1 August 2012).

Mr. Paloh and his associates are working closely with the Company and assisting with the engagement with key Indonesian stakeholders, particularly in both central and local government. As a substantial shareholder in Intrepid, whose interests are now fully aligned with existing Intrepid shareholders, Mr. Paloh is well-placed to assist in promoting the Company's profile and business interests within Indonesia.

The Transaction

As previously noted, Intrepid and the Subscriber have entered into a Subscription Agreement, under the terms of which the Company has issued 27,680,017 ordinary shares to the Subscriber for a nominal price. These shares shall not vest for 12 months following their issue.

Additionally, the Company has issued to the Subscriber, for no consideration, 25,604,016 Performance Rights to ordinary shares, which vest upon the daily volume-weighted average price of the Company's shares equalling or exceeding A$1.00 for one full calendar month on the ASX and C$1.00 for one full calendar month on the TSX, and which lapse after one year should vesting not have occurred. This target would represent value uplift of over four times based on current market prices.

The Company has further agreed to issue an additional 25,604,016 Performance Rights to ordinary shares, subject to requisite TSX approvals being obtained. The Performance Rights vest upon the daily volume-weighted average price of the Company's shares equalling or exceeding A$1.20 for one full calendar month on the ASX and C$1.20 for one full calendar month on the TSX, and lapse after one year should vesting not have occurred. This target would represent value uplift of over five times based on current market prices.

This transaction has been undertaken in reliance on the exemption contained in 602(g) of the TSX Company Manual. As more than 75% of the volume and value traded in Intrepid's shares over the last six months has occurred on the Australian Stock Exchange (the "ASX") and the transaction is in compliance with the Listing Rules of the ASX and all required approvals from the ASX have been obtained, the transaction is exempt from the TSX rules. The issuance of the final tranche of performance rights remains subject to final approval of the investor by the TSX.

Forward-looking statements

This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.

Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Colin G. Jackson (Chairman)
Brad A. Gordon (Managing Director)
Ian McMaster (Deputy Chairman)
Laurence W. Curtis (Non-executive Director)
Robert J. McDonald (Non-executive Director)
Alan Roberts (Non-executive Director)
Adrianto Machribie (Non-executive Director)
Nyla Bacon (Company Secretary)
Stock Exchange Listing
ASX and TSX symbol: IAU
Substantial Shareholders
Taurus Funds Management 9.0%
Acorn Capital 7.9%
Van Eck Associates 6.5%
Issued Capital
5,922,608 unlisted options
4,620,450 unlisted share rights
Shareholder Enquiries
Matters related to shares held,
change of address and tax file
numbers should be directed to:
Computershare Investor Services
GPO Box 2975, Melbourne, Victoria 3001, Australia
Telephone: 1300 805 505
+61 3 9415 4000

Contact Information

  • Inquiries regarding this report and Company
    business may be directed to: Intrepid Mines Limited
    Brad Gordon, Managing Director, Chief Executive Officer
    Brisbane, Australia (office) +61 7 3007 8000
    (mobile) +61 400 036 636

    Intrepid Mines Limited
    Greg Taylor
    Investor Relations
    Toronto, Canada
    (office) +1 905 337 7673 / (mobile) +1 416 605 5120