TAW - Tawana Resources NL - Innovative funding secures Kareevlei trial mining Release Date: 27/10/2008 09:40:02 Code(s): TAW
TAW - Tawana Resources NL - Innovative funding secures Kareevlei trial mining
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW ISIN: AU000000TAW7
("Tawana" or "the Company")
Innovative funding secures Kareevlei trial mining commencement
The Directors of Tawana are pleased to announce the conclusion of an agreement
on 25 October 2008 with Risk Free Investments 2 (Proprietary) Limited t/a Agio
Diamond Investments ("Agio") for the sale of a 26% interest in Tawana`s
Kareevlei Project for Rand 12 Million (Approximately A$1.7 million at current
exchange rates). The Agreement requires Agio to effect payment of the purchase
price within 30 days of signature.
Agio is an unlisted South African investment company, headed by Johannesburg
businessman Jack Feldman, which is currently building a portfolio of resource
In terms of the agreement Tawana and Agio will commence trial mining on a joint
venture basis with the companies funding costs and sharing profits on a 74% /
26% basis respectively.
Kareevlei is a kimberlite cluster situated some 160 km North West of Kimberley,
On completion of trial mining, Agio will have the option of converting its
interest in the project into equity in Tawana at A$0.10 (approximately Rand 0.70
at current average rates) per Tawana share, which would result in Agio holding
approximately 12% of the current issued capital of Tawana.
Tawana`s recent restructure of its Black Economic Empowerment relationship with
Seven Falls, whereby Seven Falls exchanged its 26% holding in Tawana`s South
African Projects for an 8% holding in Tawana, has enabled Tawana to sell 26% of
the Kareevlei project to Agio, without diluting its own historic interest of 74%
in the project.
Commenting on the transaction Tawana`s Executive Chairman, Neil Barrie said: "I
am delighted to welcome Agio as partners in our Kareevlei Wes project, a diamond
from which recently attracted a bid as high as US$ 2800 per carat on a public
tender. The transaction is representative of Tawana`s entrepreneurial ability to
produce innovative funding solutions. We have an outstanding management team and
first class assets which over the near term will transcribe into wealth creation
for our shareholders and business partners. This deal clearly shows that in any
market situation asset quality and management focus can be rewarded."
Contact: Wolf Marx
Phone: +61 (0)3 98635222 Mobile: +61 (0)428398446
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 27/10/2008 09:40:01 Supplied by www.sharenet.co.za
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