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Mvela Resources - Company Press Release
Mvelaphanda Resources Limited
(Registration number 1980/001395/06)
(Incorporated in the Republic of South Africa)
(Share code: MVL & ISIN number: ZAE000050266)
("Mvela Resources")
Joint statement by De Beers and Mvelaphanda Resources Limited ("Mvela
Resources")
FINALISATION OF THE TERMS OF NDOWANA EXPLORATION 2 (PTY) LIMITED ("NDOWANA 2") -
JOINT VENTURE FOR PRIMARY KIMBERLITE EXPLORATION IN LIMPOPO AND MPUMALANGA
PROVINCES
De Beers Consolidated Mines and Mvela Resources are pleased to announce the
finalisation of a shareholders agreement, which makes provision for equity
participation of 51% for Mvela Resources and 49% for De Beers in Ndowana 2 in
respect of specific applications lodged during 2000 and 2001 for certain mineral
rights on areas previously owned by the State. The equity participation and
terms of the initial Ndowana agreement remains the same in respect of mineral
rights outside of the aforesaid area, namely 33% for Mvela Resources and 67% for
De Beers.
In terms of the revised agreement, on taking a prospective development on land
governed by the new agreement to bankable feasibility stage, the partners will
discuss in good faith the terms of the marketing of production.
This agreement ensures the joint venture"s compliance with the requirements of
the Broad-Based Socio-Economic Empowerment Charter for the South African Mining
Industry (the "Mining Charter") and following the recently proposed sale of a
26% equity stake in De Beers to a broad-based empowerment consortium,
underscores De Beers" commitment to transformation and development in South
Africa.
De Beers Group Manager of Exploration, Bill Mckechnie said: ""We are pleased to
have concluded this agreement with Mvela Resources and we look forward to
successfully collaborating on our expertise and technologies to realise the
economic potential of this partnership, with the vision to contribute positively
towards the growth of sustainable diamond mining in South Africa into the
future.
"This agreement represents real, sustainable empowerment, where the risks and
needs of both parties have been taken into account, resulting in an equitable
economic flow-through," said Mvelaphanda Chief Executive Officer Pine Pienaar.
"The finalisation of this agreement will expedite the application process for
further prospecting rights and accelerate the diamond exploration programme in
this promising region in South Africa," concluded Pienaar.
The Ndowana joint venture has recently been granted new order prospecting
permits on two previously state-owned target areas and has commenced exploration
in those areas. R20 million for exploration has been budgeted by the joint
venture partners for the year ending 30 June 2006. Additional applications have
been submitted and the joint venture anticipates further success in the new
year.
ENQUIRIES:
De Beers Mvelaphanda Resources
Nicola Wilson James Wellsted
Tel: (011) 374 7399 Tel: (011) 325 5323
Mobile: 083 299 5552 Mobile: 083 453 4014
nicola.wilson@debeersgroup.com james@mvelares.co.za
Johannesburg
6 December 2005
Date: 06/12/2005 12:59:05 PM Produced by the JSE SENS Department
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