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LAF
LOLAF
Lonrho Africa - Brinkley Mining Plc Partners with the Democratic Republic Of
Congo"s Atomic Energy Commission
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
BRINKLEY MINING PLC PARTNERS WITH THE DEMOCRATIC REPUBLIC OF CONGO"S ATOMIC
ENERGY COMMISSION
Lonrho is pleased to announce that Brinkley Mining Plc ("Brinkley"), in which
Lonrho has a 9.94% interest, has entered into a partnership with the Atomic
Energy Commission of the Democratic Republic of Congo ("DRC") for the
development of the country"s uranium resources.
Lonrho"s Joint Executive Chairman and Chief Executive, David Lenigas,
commented:
"The DRC is well known for its uranium potential, having been one of the main
suppliers of uranium to the world during the middle of the last century. A
partnership with the DRC Government"s Atomic Energy Commission is an excellent
opportunity for Brinkley."
The full text of Brinkley"s announcement released earlier today is as follows:
BRINKLEY MINING PLC
("BRINKLEY MINING" OR THE "COMPANY")
BRINKLEY MINING PARTNERS WITH LE COMMISSARIAT GENERAL E L"ENERGIE ATOMIQUE
("CGEA") TO DEVELOP AND ADVISE ON ALL URANIUM ASSETS IN THE DEMOCRATIC
REPUBLIC OF CONGO ("DRC").
Brinkley Mining has entered into agreements to acquire 70% of a company to be
known as Brinkley Africa Ltd ("Brinkley Africa"), in which the key asset is an
agreement with the CGEA (the "Agreement"). CGEA is a statutory Government body
of the DRC, and is responsible for domestic management of nuclear resources
and the DRC"s compliance with International Treaties.
Under the terms of the Agreement, Brinkley Africa is the CGEA"s partner for
the development of the DRC"s uranium resources as well as assisting the CGEA
to comply with its obligations under national law and International Treaties.
Brinkley Africa also has a first right of refusal and the right to choose
partnerships with the CGEA for the exploration and development of any uranium
projects in the DRC.
Brinkley Africa and CGEA are now actively working together to prioritise the
development of a number of key uranium projects in the country. The agreement
stipulates Brinkley Africa"s and CGEA"s typical shareholding for all mining
projects will be 80% and 20% respectively, while non-mining projects will be
developed on a case by case basis.
Brinkley has acquired the interest in Brinkley Africa for an initial
consideration of 5 million new ordinary shares of 0.15p each in the capital of
Brinkley Mining ("Ordinary Shares") and US$0.5 million payable in cash (the
"Initial Consideration") with a further 5 million Ordinary Shares to be issued
upon the first grant to Brinkley Africa of a Permis de Recherche (exploration
permit) over exploration areas as agreed by Brinkley Africa"s shareholders.
Based on the current Brinkley Mining share price of 21p and current exchange
rates, the Initial Consideration is valued at approximately GBP1.3 million.
All consideration shares will be subject to a 12 month lock-in arrangement.
The remaining 30% of Brinkley Africa is held by international private
investors.
Brinkley Mining has a 15 year option to acquire the remaining 30% interest in
Brinkley Africa at a price to be agreed at the time, to be satisfied by the
issue of new Brinkley Mining Ordinary Shares (the "Option Consideration
Shares"). In the event that the Option Consideration Shares exceed more than
10% of the issued share capital, then Brinkley Mining shareholder approval for
the transaction will be sought.
Brinkley Mining has agreed to fund Brinkley Africa to develop projects in the
DRC. The funding will be provided though a loan agreement provided by Brinkley
Mining to Brinkley Africa, of up to US$5 million at commercial rates. Other
than the Agreement, Brinkley Africa has no material assets or liabilities.
Gerard Holden, Chairman of Brinkley Mining said: "We are delighted to have
been chosen by CGEA as its strategic partner in this extraordinary and unique
opportunity to assist in the development of the DRC"s renowned uranium
resources. The DRC contains one of the world"s most abundant collections of
natural resources which include a number of well-known uranium deposits. We
look forward to working closely with the CGEA to assist in maximising the
development of uranium resources for the country"s benefit and to help it meet
its obligations under international treaties."
24 October 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 24/10/2006 10:11:24 AM Produced by the JSE SENS Department
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