12th Apr 2010 07:00
Nyota Minerals Limited ('Nyota' or the 'Company')
NYOTA SECURES OPTIONS OVER HIGHLY PROSPECTIVE ADDITIONAL GROUND IN ETHIOPIA
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HIGHLIGHTS
Ø Over 4,500 km2 of prospective ground secured under 60 day option agreements Ø Tenements located in area which is quickly gaining the attention of a large number of exploration companies Ø Tenements are located to the north of the Tulu Kapi project and exhibit the same major geological structures thought to control mineralisation at Tulu Kapi
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The directors of Nyota are pleased to announce that the Company has reached agreement with the holders of a package of highly prospective tenements in Ethiopia ("Tenements"), pursuant to which Nyota has secured exclusive options to acquire an 80% interest in the Tenements.
The Tenements comprise approximately 4,500 sq km of highly prospective ground and are situated to the north of the Company's existing Tulu Kapi gold project, where a drilling programme is currently underway to upgrade the maiden JORC Inferred resource of 690,000 oz of Au announced late last year. They exhibit the same major geological structure thought to control mineralisation at Tulu Kapi and bear evidence of extensive historical workings. The option arrangements have been reached with two parties who each own certain of the tenements within the overall Tenement package ("Vendors").
Nyota Chief Executive, Melissa Sturgess, said:
"The signing of these option agreements is another important strategic step for Nyota. It gives us potential tenure over a further large ground holding in a region that is quickly gaining the attention of a large number of exploration companies. We are ensuring our gold footprint in Ethiopia is significant so that as we increase our understanding of the regional geology we are best placed to capitalise on this knowledge and undertake meaningful exploration, as we have done successfully at Tulu Kapi."
Under the terms of the option arrangements, which are legally binding, Nyota will pay £20,000 in cash to each of the two Vendors (ie £40,000 in total) as a non-refundable option fee in consideration of being granted a 60-day exclusive option period within which to carry out further due diligence on the Tenements (including a site visit with the vendors' geologists and review of all available technical information).
The options are independent of one another and hence the Company may elect to exercise one, both, or neither of the options. Should it choose to exercise the options, Nyota will:
·; issue to the Vendors a total of 20,000,000 new fully paid ordinary shares in the capital of the Company (12,000,000 to one Vendor and 8,000,000 to the other Vendor);
·; pay to the Vendors a total of £60,000 in cash (£30,000 to each Vendor) by way of reimbursement for historical expenditure; and
·; be responsible for sole funding exploration on the Tenements until the production of a bankable feasibility study (following which funding will be pro rata to the Tenement owners' percentage interests in the Tenements).
A formal sale and purchase agreement, plus a joint venture agreement containing the usual provisions ordinarily found in similar agreements (including a mechanism whereby Nyota may acquire the remaining 20% interest in the Tenements), will also be put in place with each of the Vendors as appropriate.
For further information please contact:
Melissa Sturgess
Nyota Minerals Limited
(+44) (0)78 2555 1397 or [email protected]
Richard Brown/ Richard Greenfield
Ambrian Partners Limited
(+44) (0)20 7634 4700
Guy Wilkes or Justin Tooth
Ocean Equities Limited
(+44) (0)20 7786 4370 / (+44) (0) 20 7786 4385
Press enquiries
Charlie Geller or Leesa Peters
Conduit PR
(+44) (0)20 7429 6604 / (+44) (0)75 2823 3383
Or visit: http://www.nyotaminerals.com
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