Overview and Prospects
R&E continues to operate as an investment and exploration company in the gold mining sector, while the recovery of misappropriated assets remains a high priority. Management accordingly continues to carefully balance between investing in litigation and preserving and growing current assets.
R&E currently holds prospecting rights directly and indirectly through subsidiary companies which it plans to develop further, if proven viable, in order to increase the value of its investments.
Approximately 26% of the assets of R&E at 31 December 2009 constituted investments in the gold market through R&E’s investment in Gold Fields Limited and gold-related prospecting rights. The balance of the assets of R&E is comprised of cash and secured loans to JCI Limited, which are currently in the process of being settled by way of R&E exercising its rights to acquire JCI’s interest in Free Development and Investment Corporation (FSD). Upon completion of the settlement transaction, R&E will own 85.21% of FSD.
R&E’s strategic objectives are as follows:
- To seek commercial opportunities and to successfully exploit them for the benefit of R&E and its shareholders
- To utilise its assets to further develop other assets or acquire and invest in assets to grow the current portfolio;
- To continue pursuing its claims against third parties; and
- To realise value (insofar as is possible) from the existing prospecting rights portfolio.
Share Data
As at the date of re-listing on the JSE (4 June 2010), the total authorised ordinary share capital of the company comprised 105 000 000 ordinary shares with a par value of R0.01 (one cent) each, the issued ordinary share capital comprised of 74 813 128 ordinary shares with a par value of R0.01 (one cent) each and a total share premium account of R986.05 million.
Prospecting Rights
Executive Summary of Mineral Asset Valuation for:
ADR information
American Depository Receipts transfer agent
For more information on ADRs, please go to http://www.adrbnymellon.com/dr_edu_basics_and_benefits.jsp
As at the end of April 2010 approximately 11% of R&E ordinary shares were represented by American Depository Receipts (ADRs) through the Bank of New York Mellon (BNYM).
R&E entered into an ADR scheme, with BNYM as the depositary bank, in March 1997. The ADRs were traded on the Nasdaq Exchange (share code: Rangy), with one ADR representing one ordinary R&E share. R&E (or Rangy) was suspended from the Nasdaq Exchange on 21 September 2005 because the company did not file the necessary regulatory information. The company’s ADRs were then traded “over the counter” in the US until 24 March 2008 when the Securities and Exchange Commission (SEC) revoked the registration of R&E shares and ADRs. Thereafter the trading (sale or purchase) of any R&E share or ADR was prohibited.
The R&E board is continuing to explore a lifting of the SEC restriction that currently prohibits the trade of R&E ordinary shares or ADRs in the US. There is no intention to relist on the Nasdaq but legal counsel for the BNYM and R&E are in discussion with the SEC as to the possibility of being granted an exemption from SEC registration to allow a resumption of “over the counter” trading of ADRs.
The re-listing of R&E on the JSE on 4 June 2010 is an essential first step towards the possible achievement of this goal.
In the meantime, some US holders of ADRs have indicated that they intend voluntarily to convert their ADRs into ordinary R&E shares, which would then be traded on the JSE via nominee accounts.
Status of US trading market (8 July 2010)
Important Dates
 Listing of R&E on the JSE at commencement of trade on Friday, 4 June 2010- JCI General Meeting to be held on or about Friday, 4 June 2010
- Results of JCI General Meeting published on SENS on or about Friday, 4 June 2010
- Results of JCI General Meeting published in the press on or about Monday, 7 June 2010
- Special resolution of JCI shareholders registered by CIPRO Thursday, 17 June 2010
- Finalisation announcement on SENS in respect of capital distribution and unbundling on or about Friday, 18 June 2010
- Finalisation announcement in press in respect of capital distribution and unbundling on or about Monday, 21 June 2010
- Last day to trade to participate in the capital distribution of the settlement GFI shares and the unbundling Friday, 25 June 2010
- Shares trade ex right to participate in the capital distribution of the settlement GFI shares and ex entitlement to participate in the unbundling Monday, 28 June 2010
- Record date Friday, 2 July 2010
- Settlement GFI shares transferred to R&E and new JCI shares issued to R&E Friday, 2 July 2010
- Settlement GFI shares distributed to R&E shareholders and unbundling implemented Monday, 5 July 2010
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