April 17, 2000
Financial Restructuring And Appointment Of Chairman
Trans Hex International Ltd. (TSE-THI) is pleased to confirm that all necessary approvals have been received for the financial restructuring announced on February 23, 2000.
In terms of this restructuring, the loan due to the Company's principal shareholder, Trans Hex Group Limited, amounting to $2.85 million at March 31, 2000 has been applied to the purchase of 713,136 common shares in the Company, at an effective price of $4.00 per common share. This step by Trans Hex Group, a substantial South African diamond producer, reaffirms their commitment to and confidence in Trans Hex International. The interest of Trans Hex Group in the Company increases from 71.8% to 73.2% as a result of this transaction.
Also effective on March 31, 2000, the Company has received all the necessary approvals for the project finance loan agreements concluded with Trans Hex Group, for the funding of its principal projects for the year to March 31, 2001. Trans Hex Group has committed US$2 million for the funding of the Barra Grande project in Brazil, and N$17 million (approximately US$2.6 million) for the funding of the Northbank project in Namibia. These loans will only be drawn down by the Company as required and are repayable out of up to 75% of the initial surplus cash received from the projects. Repayment will firstly be applied to the outstanding capital and secondly, to the extent that additional surplus cash is available, towards interest calculated at LIBOR.
As previously announced, Mr. Niel Hoogenhout stepped down for personal reasons as Group Managing Director of Trans Hex Group effective March 31, 2000. Mr. Hoogenhout remains a non-executive director of Trans Hex Group and has been appointed as Chairman and Chief Executive Officer of Trans Hex International. The ongoing support of Trans Hex Group is further confirmed by the appointment of Mr. Bernard van Rooyen, Chairman of Trans Hex Group, to the Board of the Company and the appointment of Mr. Peter Danchin, Managing Director - Operations of Trans Hex Group, as Chief Operating Officer of the Company.
Trans Hex International is an international diamond exploration company with interests in exploration projects and joint ventures in Namibia, Brazil, Botswana and Zimbabwe. The Principal shareholder of the Company is Trans Hex Group Limited, a South African producer of high quality gem diamonds, with well established independent diamond marketing facilities. The design and conduct of the Company's exploration programs is the responsibility of Mr. Peter Walker, a professional geologist registered with the South African Council for Natural Scientific Professions.
FOR FURTHER INFORMATION PLEASE CONTACT:
D.M. (Niel) Hoogenhout - Chairman and C.E.O. Tel +1.416.363-5440 Fax +1.416.363-6506 E-Mail email@example.com
Peter W.A. Walker - Vice President, Exploration Tel +27.21.939-1105 Fax +27.21.939-0711 E-Mail PeterW@transhex.co.za
Stephen Woodhead - Chief Financial Officer Tel +1.416.363-5440 Fax +1.416.363-6506 E-Mail firstname.lastname@example.org