23rd Oct 2006 16:14
Lonrho Africa PLC23 October 2006 LONRHO AFRICA PLC ("Lonrho" 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 whichLonrho has a 9.94% interest, has entered into a partnership with the AtomicEnergy Commission of the Democratic Republic of Congo ("DRC") for thedevelopment 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 mainsuppliers of uranium to the world during the middle of the last century. Apartnership with the DRC Government's Atomic Energy Commission is an excellentopportunity 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 a 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 beknown as Brinkley Africa Ltd ('Brinkley Africa'), in which the key asset is anagreement with the CGEA (the 'Agreement'). CGEA is a statutory Government bodyof the DRC, and is responsible for domestic management of nuclear resources andthe DRC's compliance with International Treaties. Under the terms of the Agreement, Brinkley Africa is the CGEA's partner for thedevelopment of the DRC's uranium resources as well as assisting the CGEA tocomply with its obligations under national law and International Treaties. Brinkley Africa also has a first right of refusal and the right to choosepartnerships with the CGEA for the exploration and development of any uraniumprojects in the DRC. Brinkley Africa and CGEA are now actively working together to prioritise thedevelopment of a number of key uranium projects in the country. The agreementstipulates Brinkley Africa's and CGEA's typical shareholding for all miningprojects will be 80% and 20% respectively, while non-mining projects will bedeveloped on a case by case basis. Brinkley has acquired the interest in Brinkley Africa for an initialconsideration of 5 million new ordinary shares of 0.15p each in the capital ofBrinkley Mining ('Ordinary Shares') and US$0.5 million payable in cash (the'Initial Consideration') with a further 5 million Ordinary Shares to be issuedupon the first grant to Brinkley Africa of a Permis de Recherche (explorationpermit) over exploration areas as agreed by Brinkley Africa's shareholders. Based on the current Brinkley Mining share price of 21p and current exchangerates, the Initial Consideration is valued at approximately £1.3 million. Allconsideration shares will be subject to a 12 month lock-in arrangement. Theremaining 30% of Brinkley Africa is held by international private investors. Brinkley Mining has a 15 year option to acquire the remaining 30% interest inBrinkley Africa at a price to be agreed at the time, to be satisfied by theissue of new Brinkley Mining Ordinary Shares (the 'Option ConsiderationShares'). In the event that the Option Consideration Shares exceed more than 10%of the issued share capital, then Brinkley Mining shareholder approval for thetransaction will be sought. Brinkley Mining has agreed to fund Brinkley Africa to develop projects in theDRC. The funding will be provided though a loan agreement provided by BrinkleyMining to Brinkley Africa, of up to US$5 million at commercial rates. Other thanthe Agreement, Brinkley Africa has no material assets or liabilities. Gerard Holden, Chairman of Brinkley Mining said: 'We are delighted to have beenchosen by CGEA as its strategic partner in this extraordinary and uniqueopportunity to assist in the development of the DRC's renowned uraniumresources. The DRC contains one of the world's most abundant collections ofnatural resources which include a number of well-known uranium deposits. We lookforward to working closely with the CGEA to assist in maximising the developmentof uranium resources for the country's benefit and to help it meet itsobligations under international treaties.' End For further information, please contact: Lonrho Africa Plc +44 (020) 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Strand Partners Limited +44 (0)20 7409 3494Simon RaggettMatthew Chandler Cardew Group +44 (0)20 7930 0777Nadja Vetter +44 (0)7941 340 436Eden Mendel +44 (0)7887 676 603Emma Consett +44 (0)7971 468 308 Notes to Editors Lonrho is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chairman and Chief Executive andsubsequent shareholder approval in February 2006, focuses on the naturalresources, infrastructure, leisure and agribusiness sectors. Lonrho's executiveteam has considerable experience across these industries in a wide range ofcountries. This year, the Company has announced investments in Brinkley MiningPlc, Nare Diamonds Ltd, Luba Freeport in Equatorial Guinea and Fly540 (a lowcost start-up airline based in Kenya). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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