20th Nov 2009 14:49
Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration
20 November 2009
Kalahari Minerals plc (`Kalahari' or `the Company') Completes North River Resources transaction to develop gold and base metal projects in Namibia
Kalahari Minerals plc, the AIM listed resource company with uranium, gold and base metal interests in Namibia, announces the completion of its transaction with North River Resources Plc (`North River') announced on 5 October 2009.
Overview:
* Transaction initiated to rapidly develop gold and base metal assets in Namibia * Kalahari now controls circa 44.9% of the enlarged issued share capital of North River * Mark Hohnen and Professor Glyn Tonge have joined the board of directors of North River as Non-executive Chairman and Non-executive Director respectively * Kalahari to support North River's development of its assets both technically and financially * Deal provides an attributable market value to Kalahari's non uranium interests
Kalahari and North River Chairman, Mark Hohnen, said, "This agreement has paved the way for the next phase of development at our gold and base metal projects in Namibia, following the extensive exploration programme completed by Kalahari between 2006 to 2008 comprising circa 8 million of investment. The pool of expertise and corporate support amassed through the two companies' relationship and reflected by this agreement has created a strong platform which is now capable of fast tracking our non-uranium assets towards production to the benefit of both North River and Kalahari shareholders alike."
The transaction was structured for the purpose of rapidly developing certain prospective gold and base metal assets in Namibia previously held by Kalahari's wholly owned subsidiaries, Kalahari Gold Limited (`Kalahari Gold') and Kalahari Diamonds Limited (`Kalahari Diamonds').
Further to completion of the transaction, Kalahari has now been issued 266,666,667 ordinary shares in North River (`the Consideration Shares') representing approximately 44.9% of North River's enlarged issued share capital, in return for the disposal of the entire issued share capital of West Africa Gold Exploration (Namibia) (Proprietary) Limited (`WAGE') and Craton Diamonds (Proprietary) Limited (`Craton'), subsidiaries of Kalahari Gold and Kalahari Diamonds respectively, which hold the gold and base metal assets. As part of the terms of the transaction, North River was required to successfully complete a fund raise of not less than 5 million via an equity placing, however following strong institutional interest, the final new monies raised totalled 7 million.
In order to facilitate and promote cooperation between the two companies, Mark Hohnen, Executive Chairman of Kalahari, and Professor Glyn Tonge, Non-executive Director of Kalahari, have today joined the board of directors of North River as Non-executive Chairman and Non-executive Director respectively. Kalahari, through its shareholding and board representation intends to support and guide North River throughout the development of its gold and base metal assets.
North River's primary focus for the assets which were the subject of this transaction will be the appraisal of its key copper assets for rapid development. The principal targets are the Koperberg Project, which has a current JORC Inferred Resource of 1.74Mt grading 0.9% copper (`Cu'), representing 17,000 tonnes in-situ metal, and its RK and RK West Projects, which have a non-JORC compliant in-house resource of 550Kt at 1.25% Cu at 0.5% copper cut-off, representing 6,875 tonnes of in-situ metal and a non-JORC compliant in-house resource of 770Kt at 0.9% Cu at 0.5% copper cut-off, representing 6,930 tonnes in-situ metal, respectively. Development will be focussed on the appraisal of these heap leach copper projects with a view to production as soon as practicable.
In addition to the heap leach copper targets, the Namib Lead-Zinc Project has also been identified as a priority for development. The project is centred on the historically producing Namib Lead Mine, 25km east-north-east of Swakopmund, and is situated close to excellent supporting infrastructure. The mine was operational between 1965-92 and North River and Kalahari intend to jointly initiate an aggressive exploration programme targeting an initial 1m tonnes below the existing mined areas.
Previous non-JORC mine studies at the Namib Lead-Zinc Project indicate surface tailings and in-situ underground reserves of: 1.65mt at 5.7% Zn, 1.6% Pb, 40.2 g/t Ag. Preliminary metallurgical test work was undertaken by Kalahari in 2008, which yielded favourable results indicating good separation of Pb and Zn with high recoveries and concentrate grades. Reverse circulation drilling results generated by Kalahari (15,929m sub-surface and 1,450m on a tailings dump) confirmed historical grade intercepts.
Application has been made by North River for the Consideration Shares to be admitted to trading on AIM (`Admission') and it is expected that Admission will occur on 23 November 2009. The Consideration Shares rank pari passu in all respects with the existing issued shares of North River, including the right to receive any dividends and other distributions declared following Admission.
* * ENDS * *
For further information please visit www.kalahari-minerals.com or contact:
Mark Hohnen Kalahari Minerals Plc Tel: +61 (0) 8 9389 4488 Simon Raggett Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Stuart Faulkner Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Richard Chase Ambrian Partners Ltd Tel: +44 (0) 20 7634 4700 Rory Scott Mirabaud Securities LLP Tel: +44 (0) 20 7878 3360 Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Susie Callear St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Notes to Editors:
Kalahari Minerals Plc is an AIM and NSX resource company with uranium, gold and base metal interests in western and eastern central Namibia. Its key investment is its circa 40% holding in ASX, TSX and NSX listed Extract Resources Limited (www.extractresources.com), which is developing the Husab Uranium Project, strategically located directly south of Rio Tinto's producing Rossing Mine. Work is focussing on three main prospects within the project area, Rossing South, Ida Dome and Hildenhof, and results continue to underpin the prospectivity of the region, particularly following the world class Rossing South discovery. Extract has reported a JORC compliant combined Husab Resource (Global Resource) in excess of 292 M lbs U3O8 at a grade of 439 ppm of which 267 M lbs U3O8 at a grade of 487 ppm is from the two zones at Rossing South at 100 ppm U3O8 cut-off. Importantly these are both open ended at depth and along strike. Kalahari believes Extract has the ground and potential to deliver on Kalahari's estimates of a resource in the region of 500 M lbs U3O8. Kalahari's other key investment is its circa 44.9% holding in North River.
North River Resources Plc is an AIM listed emerging southern African focussed multi commodity resource development company. Its current portfolio includes gold and base metal assets in Namibia; uranium, copper and gold assets in Mozambique; and a historic early stage exploration project in Australia. North River's strategy is to identify, acquire and develop a portfolio of resource opportunities in sub-Saharan Africa at various stages of development in order to create value for its shareholders. The company has a highly experienced board and management of industry and corporate professionals, led by David Steinepreis and Luke Bryan.
vendorRelated Shares:
NRRP.L