Western Areas NL

Western Areas NL

June 27, 2008 04:53 ET

Western Areas Announces Update to Existing $A225M Convertible Bond ("Bonds")

PERTH, AUSTRALIA--(Marketwire - June 27, 2008) - Western Areas NL (TSX:WSA)(ASX:WSA) -


1. Cash settlement details for conversion notices

2. Amendment to the terms and conditions of the Bonds ("Conditions")

3. Potential on market buyback of Bonds


On 2 July 2007 Western Areas issued a $A225M 8% 5 Year Convertible Bond at a 45% premium. The Bonds are quoted in the Singapore Stock Exchange. Please refer to the Western Areas release dated 29 June 2007 for the Conditions.

Cash Settlement for Conversion Notices

Western Areas announces that it has recently received notices to convert 46 out of 900 Bonds from holders. Western Areas has elected, under the Conditions, to pay all of these bondholders in cash to satisfy in full the conversion right. Accordingly, the principal amount owing on the Bonds will be reduced from $A225M to $A214M and no shares in Western Areas will be issued pursuant to these notices to convert.

Amendment to the Conditions

With the introduction of IFRIS (International Accounting Standards), Western Areas has identified that the cash settlement option under the Conditions ("Cash Settlement Option") could impact the accounting profit by mark to market adjustments in the value of the Bonds. This may introduce volatility to the financial results of the Company, which among other things, could impact financial ratios and covenants and the capacity of Western Areas to pay dividends to shareholders. To negate the impact of mark to market adjustments, Western Areas has modified the Conditions to delete the Cash Settlement Option, with effect from 27 June 2008, such that all conversion notices after that date will be settled in shares.

On Market Buyback of Bonds

Western Areas announces that it will continue to monitor the market in which the Bonds trade and may in the future enter the market to buy back and cancel Bonds should the timing and conditions be favourable. Further, the Company may consider other capital management strategies.

Western Areas Funding

Western Areas remains fully funded and on track to execute the expansion strategy targeting 35,000 tonnes of Nickel production in 2011 through existing cash and debt facilities.


This release contains certain forward-looking statements. Examples of forward looking statements used in this release are: 'Western Areas remains fully funded and on track to execute the expansion strategy targeting 35,000 tonnes of Nickel production in 2011 through existing cash and debt facilities'. Forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements.

This announcement does not include reference to all available information on the Company and should not be used in isolation as a basis to invest in Western Areas. Any potential investors should refer to Western Area's other public releases and statutory reports and consult their professional advisers before considering investing in the Company.

ISIN: XS0307320225

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