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 31/10/2017, the used proceeds were SAR 5,291 million and the remaining proceeds were SAR 308 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 31/10/2017 the Company used SAR 4,750 million from the proceeds as an equity contribution to Maaden Waad Al Shamal Phosphate Company. The remaining amount of SAR 312 million will be used to continue 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.
As announced on 10/07/2017 Maaden has started the initial production at its subsidiary Maaden Waad Al Shamal Phosphate Company, and as announced on 01/01/2017 the Ammonia Plant is in the commercial production stage.
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.
As of 02/10/2016 Maaden announced commercial operations for Maaden Bauxite and Alumina Company project, compared to 94.69% completion as of 29/08/2014 as mentioned in the prospectus.
Any other material developments will be announced in due course.