8th Oct 2013 08:44
LONDON (Alliance News) - Savannah Resources PLC Tuesday said it has completed the acquisition of an 80% shareholding in Matilda Minerals Limitada.
The company said the acquisition agreement was structured so that Savannah only pays an initial cash payment of GBP72,000 and an issue of GBP231,000 worth of shares upon the transfer of Matilda shares.
Matilda, which holds highly prospective assets in Mozambique, will also benefit if Savannah complete certain milestones, being issued GBP289,000 shares in Savannah upon the confirmation of inferred resources of 150 million tonnes at 3% total heavy minerals, 350 million tonnes at 3% total heavy minerals and 500 million tonnes at 3%total heavy minerals.
Savannah changed its name from African Mining & Exploration PLC to Savannah Resources PLC October 1 and moved from being a gold focused mining company to a West African resources company after it sold its subsidiary AME West Africa Limited to Alecto PLC.
Savannah shares were down 1.3% to 3.70 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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