JERSEY, Channel Islands and NEW YORK, June 2, 2004 (PRIMEZONE) -- London (RRS) and Nasdaq (GOLD) listed gold miner Randgold Resources is to make an application for a two-for-one share split, effective from 11 June.
The move, which was approved by shareholders at the Annual General Meeting on 26 April 2004, is primarily designed to meet liquidity demands. The proposed subdivision of one US$0.10 ordinary share into two US$0.05 new ordinary shares will increase the company's current issued share capital from 29 273 685 to 58 547 370 ordinary shares. Following the split, each shareholder will hold the same percentage interest in the company, however, the trading price of each share will be adjusted to reflect the two-for-one split. ADR holders will be affected the same way as shareholders and the ADR ratio will remain 1 ADR to 1 common share.
The company's application is for the admission to the Official List of the UK Listing Authority of the 58 547 370 new ordinary shares as a result of the two-for-one split and for their admission to trading on the market for listed securities of the London Stock Exchange. A similar application is being submitted to the Nasdaq Stock Market for the listing of all the new ordinary shares. Dealings in the new shares are expected to commence at the start of trading on the respective markets on 11 June 2004.
"The share split marks another advance in our drive to build an efficient trading platform for our stock as well as a broad shareholder base," chief executive Dr. Mark Bristow said today. "This is a significant component of our financial strategy, which at present also includes the tidying up of our balance sheet to allow for the payment of dividends."
BACKGROUND ON RANDGOLD RESOURCES:
Randgold Resources (LSE:RRS) (Nasdaq:GOLD) is an international gold mining and exploration business focused in Africa, incorporated in the Channel Islands in 1995 and listed on the London Stock Exchange in 1997 and Nasdaq in 2002.
On 22 September 2003, Randgold Resources was accepted as a member of the FTSE 250 Index.
It has to date discovered the 7 million ounce Morila deposit in southern Mali, the plus 2 million ounce Yalea deposit in western Mali and the 3 million ounce Tongon deposit in Cote d'Ivoire.
The Company successfully developed the Morila deposit into one of the world's largest and highest-margin gold mines, which since it commenced production in October 2000 has produced just over 2.5 million ounces at a total cash cost of approximately US$90 per ounce. The Company has commenced the development of a new mine at Loulo, with the open-pit operation scheduled to commence in July 2005. Feasibility study work on the underground potential to extend the life of the operation is continuing.
Randgold Resources has a prefeasibility project at Tongon in Cote d'Ivoire and a portfolio of prospective exploration projects in Mali, Cote d'Ivoire, Senegal and Tanzania.
Full information on the Company is available on the website at www.randgoldresources.com
DISCLAIMER: Statements made in this document with respect to Randgold Resources' current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Randgold Resources. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Randgold Resources cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. The potential risks and uncertainties include, among others, risks associated with: fluctuations in the market price of gold, gold production at Morila, the development of Loulo, estimates of reserves and mine life and liabilities arising from the closure of Syama. For a discussion on such risk factors, refer to the annual report on Form 20-F for the year ended 31 December 2002, which was filed with the Securities Exchange Commission on 27 June 2003. Randgold Resources assumes no obligation to update information in this release. Cautionary Note to US Investors: The United States Securities Exchange Commission (the 'SEC') permits companies, in their filings with the SEC, to disclose only proven and probable ore reserves. We use certain terms in this release, such as "resources", that the SEC does not recognise and strictly prohibits us from including in our filings with the SEC. Investors are cautioned not to assume that all or any part of our resources will ever be converted into reserves which qualify as 'proven and probable reserves' for the purposes of the SEC's industry guide number 7.
This information is provided by RNS
The company news service from the London Stock Exchange