The pan-African, multi-commodity resources company, Mwana Africa (LON:MWA), announced today that Shore River Resources has agreed to buy 80% of its share in the Butre Ahanta exploration joint venture in Ghana.
Mwana’s principal operations and exploration activities cover gold, nickel and other base metals, and diamonds in Zimbabwe, the DRC, South Africa and Ghana. Mwana Africa has been operating for some time in Ghana but in May 2009, Mwana’s exploration activities in Ghana were substantially reduced following the sale of Mwana’s entire interest in the Konongo gold exploration in Ghana. Shaw River Resources is a manganese focused West Australian based mineral exploration company, with five manganese exploration projects in the Pilbara region of Western Australia and one in Ghana.
Under the terms of the agreement, Shaw River Resources were granted a six month period to evaluate the prospect and the option to buy Mwana's interest in the concession for cash sum of USD$200,000 minus the costs incurred. In return Shaw agreed to take on the cost incurred by the joint venture, up to USD$50,000.
Now that the evaluation process has been completed, the terms have been revised. In stead of a cash sum of USD$50,000, Shore will now issue Mwana with 980,000 ordinary Shore shares, subject to the market value of the issued shares being collectively at least $150,000. Mwana have reportedly agreed to retain the shares for a minimum for at least 3 months from the issue date. If the shares are worth less than the required USD$150,000, then Shore will pay pay Mwana a cash sum of £150,000.
The transaction is expected to complete by the end of March.
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