London, 23 February 2010- Mwana Africa PLC ("Mwana") is pleased to announce that it has received notification from ASX-listed Shaw River Resources ("SRR") (ASX:SRR) that SRR has exercised its right to acquire Mwana's 80% interest in the Butre Ahanta exploration joint venture in Ghana ("Butre Ahanta"), pursuant to an option agreement entered into in September 2009.
Under the terms of the agreement, SRR were granted a period of six months to evaluate the prospect in return for assuming up to $50,000 of the costs incurred by the joint venture in the period. SRR were also granted an option to acquire Mwana's interest in the concession for a cash consideration of $200,000 minus the costs incurred.
Following the conclusion of SRR's evaluation process, Mwana and SRR have agreed revised terms of the transaction. In place of cash consideration, SRR will issue to Mwana 980,000 ordinary SSR shares, provided that the market value of the shares on issue is at least $150,000. Mwana has agreed to hold the shares for a minimum period of three months from the date of issue. If, however, the market value of the shares on issue is below $150,000, SRR will instead pay to Mwana a cash consideration of $150,000.
Completion is expected by 31 March 2010.
Oliver Baring, Executive Chairman
Tel: 020 7654 5580
Mike Jones / Guy Blakeney
Tel: 020 7050 6500
Tom Randell /Anca Spiridon
Tel: 020 7726 8400
References to dollars or "$" refer to US dollars unless otherwise stated.
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 and regulatory risks and the other risks and hazards associated with mineral exploration, development and production. 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 |