Mwana Africa PLC has received from BHP Billiton World Exploration Inc notice of BHP Billiton's withdrawal from the kimberlite diamond exploration agreement entered into between BHP Billiton and SouthernEra Diamonds Inc, with effect from 31st December 2008. BHP Billiton has also proposed to terminate the exploration agreement entered into between BHP Billiton and Gravity Diamonds Limited.
Gravity and SouthernEra were acquired by Mwana in 2007 for a total consideration of £68m. Prior to these acquisitions, BHP Billiton owned shares in both Gravity and SouthernEra, which it tendered in exchange for Mwana shares as part of each transaction.
Mwana has subsequently been in negotiation with BHP Billiton to take forward discussions including combining the Gravity and SouthernEra agreements into a single exploration agreement, and the potential for BHP Billiton to wholly fund the exploration programme. These discussions, including agreement of exploration budgets, were not concluded. Following BHP Billiton's withdrawal from the SouthernEra agreement and proposed termination of the Gravity agreement, all options including the closure of all kimberlite diamond exploration in the DRC, are being considered by Mwana.
Oliver Baring, Executive Chairman
Tel: 020 7654 5588
Tom Randell / Anca Spiridon
Tel: 020 7653 6620
Mike Jones / Ryan Gaffney
Tel: 020 7050 6500
This press release includes “forward-looking statements”. Words such as “anticipates”, “expects”, “intends”, “plans”, “forecasts”, “projects”, “budgets”, “believes”, “seeks”, “estimates”, “could”, “might”, “should” and similar expressions identify forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding Mwana Africa's business strategy and plans and objectives of management for future operations and acquisition opportunities, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Mwana Africa or the markets and economies in which Mwana Africa operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements, including, without limitation, political, regulatory and economic factors. Factors that would cause actual results or events to differ from current expectations include, among other things, political risks, changes to regulations affecting Mwana Africa's activities, and the other risks involved in the mineral exploration industry. Mwana Africa believes that the assumptions inherent in the forward-looking statements are reasonable; however, forward looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Mwana Africa does not assume any responsibility to update any of such forward-looking statements, save as required by relevant law or regulatory authority.
| Share code: | MWA |
| Market: | AIM |
| Listing date: | 26 Oct 2005 |
| Index: | FTSE AIM All-Share Index |
| Sector: | Basic Resources; |
| Sub‑sector: | Gold Mining |
| Country of register: | Great Britain |
| Segment: | AMSM |