26th Jun 2006 09:50
Albidon Limited26 June 2006 Suite 1 Hillway Housealbidon limited 141 Broadway Nedlands 6009 Western Australia ARBN 107 288 755 Tel: +61 8 9389 6300 Fax:x +61 8 9389 6400 Email: [email protected] ASX Code: ALB AIM Code: ALD via electronic lodgement Development Agreement Signed with the Zambian Government for the Munali Nickel Project HIGHLIGHTS • Albidon and the Government of Zambia have signed a Development Agreement for the Munali Nickel Project. • The Agreement defines the fiscal and regulatory framework for development of the project, locking in key incentives over a five year stability period. • Signing of the Agreement achieves an important milestone in the Bankable Feasibility Study and satisfies a key condition required for debt financing of the project. • The Development Agreement applies to the Enterprise Deposit and any other nickel projects developed within the 800 square kilometre Munali Mining Licence. Summary of Development Agreement The Development Agreement sets out the fiscal and regulatory conditionsapplicable to the Munali Nickel Project, including the following: • An initial five year stability period, commencing in 2007, during which all fiscal, royalty and taxation provisions for the project are fixed, unless more favourable legislation is effected. • Beneficial arrangements regarding capital expenditure deductions and carry forward of tax losses for up to ten years. • No restrictions on repatriation of funds, and no withholding tax on remission of profits. • Deferred payment of various customs and excise duties and imposts. The Development Agreement also sets out the key components of the Munaliproject, including infrastructure development, planned nickel mining andprocessing operations, as well as environmental undertakings and communitydevelopment commitments by Albidon. Completion of the Development Agreement marks the successful culmination of manymonths of discussion between Albidon and various stakeholders, including: Office of the President of Zambia; Ministry of Finance; Ministry of Mines and Minerals Development; Attorney General's Department; Environmental Council of Zambia; Mazabuka District Council; His Royal Highness, Chief Naluama; and The people of Chinkomba and Kachenje villages and the surrounding community. Albidon wishes to express its appreciation for the constructive efforts of allof the above groups in facilitating the completion of the Development Agreement. The Development Agreement is an important milestone that will facilitate theimplementation of the Munali Nickel Project, upon completion of the BankableFeasibility Study. On behalf of the Board of Albidon. If you have any queries please contact Dale Rogers, Managing Director or NickDay, Company Secretary on +61 8 9389 6300 or email [email protected] Additional information may also be viewed on Albidon's website atwww.albidon.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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