| Wed 18 Aug 2010, 10:16 | | TAW - Tawana Resources NL - Heads of Agreement for Sale of Kareevlei Diamond |
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TAW
TAW
TAW - Tawana Resources NL - Heads of Agreement for Sale of Kareevlei Diamond
Project
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"
Heads of Agreement for Sale of Kareevlei Diamond Project
The directors of Tawana Resources NL (ASX: TAW) ("Tawana" or "the Company") are
pleased to announce the signing of a binding Heads of Agreement ("HoA") between
Tawana`s wholly owned subsidiary Diamond Resources (PTY LTD) and Rolatseng
Mining CC ("the Purchaser"), for the sale of its Kareevlei Wes Tenement, in
South Africa.
The key terms of the HoA are as follows;
payment of a R150,000, non-refundable deposit within 14 days of the signing of
the HoA,
payment of R1,350,000 non-refundable sum within 30 days of the signing of the
HoA, subject to the mining right being transferred to the purchaser,
payment of R23,500,000 within seven days of the completion of a Trial Mining
exercise.
The Trial Mining will involve the mining and processing of a 20,000 tonne bulk
sample, at the cost of the purchaser. It must commence within 30 days of the HoA
signing and be completed no later than seven months after that signing.
The final payment of R23,500,000 may vary up or down by 10% depending upon the
results of the Trial Mining, with an expert valuator to determine the fair and
equitable figure. The HoA price has been calculated on the assumption of an
average grade of 10 cpht at an average value of US$145/ct.
The Purchaser shall hire Tawana`s plant and equipment at a cost of R40,000 per
month and shall be responsible for rehabilitation of the site. Diamonds
recovered during the exercise shall be pledged as security for the payment of
the balance of the purchase price.
Conditions precedent to the HoA becoming binding include;
approval by the board of Tawana (which has been achieved),
Rolatseng Mining CC achieving funding approval, to the satisfaction of Tawana,
within 30 days of signing,
approval of an application for the transfer of title by the Department of
Minerals and Petroleum Resources Act 2002, within 30 days of signing, and
the completion of a comprehensive transaction agreement within 30 days of
funding approval.
The Kareevlei Project is not considered a core asset going forward. The proposed
sale represents another step in the rationalisation of the Company`s diamond
projects as the Board seeks to strengthen its financial position.
The funds derived from the sale will be earmarked for promising initiatives
being considered by Tawana, including but not restricted to gold projects in
West Africa.
Tawana maintains its valuable interests in iron ore and manganese projects in
South Africa, held through its shareholding in Rakana.
For further information, please contact:
Warwick Grigor
Chairman
18 August 2010
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 18/08/2010 10:16:01 Produced by the JSE SENS Department.
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