Australian Forest Industries plans $10 million PIPE alongside acquisition

By Sheri Kasprzak

New York, Sept. 1 - Australian Forest Industries Inc. said it intends to conduct a private placement for up to $10 million as part of its acquisition of Simbajamba Mines Ltd., a subsidiary of Simba Mines Inc., and of Rockbury Properties Ltd., a subsidiary of Bongani International Group Ltd.

The terms of the offering have not yet been determined, but the deal is scheduled to close within the next 30 days.

In the Simbajamba acquisition, the company will issue 5,193,375 shares to parent Simba, and in the Rockbury acquisition, the company will issue 4,806,625 shares to Bongani. At closing, Australian Forest will change its name to Zebra Copper Inc.

The company is also executing a reverse stock split comprising 257,600,680 common shares on the basis of 515.20136 shares to 1.

Based in Bay City, Mich., Australian Forest is a timber company, but after the acquisitions it will move into the copper exploration company.

On Thursday, the stock remained unchanged at $0.13 (OTCBB: AUFI).

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