OSLO, Norway, May 24, 2002 (PRIMEZONE) -- Kenor ASA's Board of Directors has proposed an equity offering (rights issue and private placements) with gross proceeds of up to approximately NOK 156 million. The offering will be voted upon in the Annual Shareholders Meeting called for Thursday, June 6, 2002.
The Board of Directors proposed offering consists of three separate share capital increases, one private placement towards mainly North-American institutional investors at a maximum of NOK 75 million, one private placement towards Norwegian investors participating in the underwriters consortium in the rights issue, of maximum NOK 19.6 million and a fully underwritten rights issue of maximum NOK 62.2 million.
The offerings are proposed at NOK 2.80 per share (each with a par value of NOK 0.50).
The underwriters in the rights issue are granted commissions of 1.75 % of the amount underwritten. In addition, the underwriters have the right to subscribe for and be allocated shares corresponding to 25 % of the amount underwritten. All underwriters are Norwegian investors. The underwritten amount will be adjusted according to the underwriters' subscriptions in the private placement.
According to the Board of Director's plans the Kenor shares will trade exclusive the subscription rights on the first day following the Annual Shareholders Meeting scheduled for June 6, 2002.
It is Kenor's intention to allocate USD 9 million for the identification and definition of geological resources sufficient to proceed with the feasibility study and the eventual construction of a modern plant. A preliminary study indicates that this plant should have a capacity of 8 million tonnes per annum yielding an annual production of approximately 350, 000 oz. In addition to this, the proceeds will be used for general corporate purposes, including a feasibility study of reserves added in the identification and definition program above.
Subscription agreements to entered into with the mainly North-American investors includes that Kenor, on a commercial basis, will seek to be quoted on an international stock exchange in the U.K., U.S.A or Canada within an indicated timeframe of 6 months.