12th May 2009 07:05
12 May 2009
Dwyka Resources Limited ('Dwyka' or the 'Company')
Issue of shares
Dwyka Resources Limited ("Dwyka" or "the Company"), has today issued 2,158,447 ordinary fully paid Dwyka shares ("Shares") to Allerton Horizon Limited ("Allerton") being Allerton's Stage 1 share entitlement under the Share Sale and Purchase Agreement ("SPA") whereby Dwyka acquired the Muremera Nickel Project ("the Project").
Dwyka acquired the entire share capital of Danyland Limited, the owner of the Project, from Allerton in January 2007 for an initial consideration of US$2,000,000 worth of Dwyka Shares. Under the terms of the SPA, Allerton was entitled to additional payments of up to US$3,000,000 in Dwyka Shares subject to the achievement of certain project milestones. Dwyka subsequently entered into a joint venture agreement with BHP Billiton whereby BHP Billiton could earn an interest of up to 50% in the Project.
In March 2009, following BHP Billiton's election not to continue with the Project joint venture, Dwyka successfully negotiated retention of 100% ownership of the Project despite BHP Billiton having satisfied its Stage 1 earn-in requirements (by spending in excess of US$7.3m on the Project) to earn a 10% interest in the Project. This represented an excellent outcome for Dwyka, allowing the Company the flexibility to proceed with the Project exploration programme without a BHP Billiton residual 10% shareholding in the Project. In addition to not diluting to 90% ownership of the Project, these negotiations resulted in Dwyka retaining all the benefit of the exploration programme, camp infrastructure, vehicle fleet and other fixed assets for the Project.
Dwyka has accepted Allerton's claim that it should be issued the Dwyka Shares to which it would have been entitled under the SPA on completion of BHP Billiton's Stage 1 earn-in. On the basis that it was Dwyka's own negotiations with BHP Billition that resulted in BHP Billiton not being issued their 10% interest in the Project, Dwyka has accepted Allerton's claim in full and final settlement of all claims under the SPA. No further Dwyka Shares will therefore be issued to Allerton pursuant to the SPA and Dwyka will retain a 100% interest in the Project.
Application has today been made for the admission of 2,158,447 Shares to trading on the AIM Market of the London Stock Exchange ("Admission"). Admission is expected to occur at 8.00 a.m. on 18 May 2009.
For further information please contact:
Melissa Sturgess
Dwyka Resources Limited
(+44) (0)78 2555 1397 or [email protected]
In United Kingdom
Richard Brown
Richard Greenfield
Ambrian Partners Limited
(+44) (0)20 7634 4700
Press enquiries
Charlie Geller or Leesa Peters
Conduit PR
+44 (0)20 7429 6604/ +44 (0)79 7006 7320
Or visit: http://www.dwyresources.com
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