Mvelaphanda Resources Limited - Mvelaphanda Resources Steps Away From Burk
Acquisition.
Mvelaphanda Resources Limited
(Registration number 1980/001395/06)
(Incorporated in the Republic of South Africa)
(Share code: MVL & ISIN number: ZAE000050266)
("Mvela Resources"or "the Company")
MVELAPHANDA RESOURCES STEPS AWAY FROM BURK ACQUISITION.
12 December 2005
Johannesburg, 12 December 2005. After completing a resource evaluation programme
and both a financial and legal due diligence of the Burk Mine, Mvelaphanda
Resources has decided not to continue with the proposed acquisition of Burk
Mining (Pty) Ltd (Burk).
A condition of the transaction as announced on 2 September 2005, was the
confirmation of a manganese resource of between one and three million tons and
one million tons of iron ore. However, the resource evaluation programme
undertaken to date has not, with sufficient confidence, been able to confirm
this. While further exploration may add to the resource defined thus far, the
acquisition does not currently meet Mvela Resources" investment hurdle rate and
the Company has other potential opportunities to apply the capital which provide
better returns to shareholders.
"We are disappointed that Burk fell marginally short of our investment
requirements as the acquisition would have provided Mvela Resources with its
first fully owned operation, a situation which is rare in current BEE companies"
said Brian Mosehla New Business Director of Mvela Resources. "None-the-less,
Mvela Resources continues to assess various opportunities and will apply its
resources in a manner which maintains its record of growth through value-
accretive acquisition".
ENDS
ENQUIRIES:
Mvelaphanda Resources Limited
James Wellsted
Tel: (011) 325 5323
Mobile: 083 453 4014
james@mvelares.co.za
Date: 12/12/2005 05:05:06 PM Produced by the JSE SENS Department
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