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Announcements and Media Coverage



30 Mar 2006 - Matodzi Resources Limited and JCI Limited announced today that agreement had been reached for:
  • Matodzi to acquire 200 million cumulative preference shares owned by JCI in Witnigel Investments (Pty) Limited for R13,3 million, payable in the form of 13,8 million new ordinary Matodzi shares. Witnigel is a wholly-owned subsidiary of Matodzi. The only asset of Witnigel is 83,3 million shares in JCI
  • 200 million unsecured redeemable convertible participating “B” preference shares owned by JCI in Matodzi to be converted into ordinary Matodzi shares on a one-for-one basis, and restated as debt in the financial statements of Matodzi for the year-ended 31 March 2005.
The net effect of the transaction will be to eliminate liabilities of R356.3 million from Matodzi’s balance sheet. Matodzi’s reviewed and restated interim report for the six months to September 2005 showed that liabilities exceeded assets by R258,3 million. Matodzi therefore returns to a solvent financial position.

JCI now controls an effective 58,8% of the issued share capital of Matodzi. The number of Matodzi shares in issue from 30 March 2006 increases from 149 537 to 363 362.

As a result of the transaction, which has been approved by shareholders and the Competitions Commission, JCI’s interested in Matodzi’s principal asset, Letseng Diamonds (Pty) Limited, increases from 30,4% to 52,7%.

JCI CEO Peter Gray said today that the Letseng mine was a “most promising” asset and played a key role in the JCI balance sheet: “It is common cause that bidders have been offering close to R1 billion for our share of the mine.” He said no decision had been taken regarding a sale.

Gray said it was unlikely there would be further announcements on Letseng until the company had published revised provisional results for the finacial years ended March 2004 and 2005 and for the six months to September 2005.

“We had intended to publish these tomorrow but the forensic and auditing process has been delayed for a few days and the announcement will be rescheduled for early next week,” he said.

Media Statement issued on behalf of JCI Limited by Brian Gibson (contact 011 880 1510 or 083 253 5988)
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