Aviva Corporation Ltd, the Botswana Stock Exchange (BSE) quoted resources company said it has entered into binding sale documentation to sell its Mmamantswe Coal Project to African Energy Resources Limited for A$3.5million. Aviva announced on 29 April 2013 that it had entered into a conditional agreement with African Energy to sell the project for A$3.5million.
Execution of binding sale documentation follows receipt of confirmation from African Energy that it is satisfied with the results of its due diligence enquiries on the Project and completion of a fundraising by African Energy to finance the acquisition of the Project.
However, the sale of the project remains conditional on Aviva’s subsidiary Mmamantswe Coal (Proprietary) Ltd being registered as the holder of 100% of the licence under which the project is operated. Acquiring 100% of the Licence is the subject of a separate transaction with Mawana Minerals (Proprietary) Limited (Mawana), the details of which were announced by Aviva on 6 May 2013. Aviva confirms that all shareholders of Mawana have now approved the sale of the Licence and the relevant Minister in Botswana has been notified of the conditional sale of the Licence. The only outstanding condition precedent on the acquisition of the Licence is the Minister in Botswana approving the sale of the Licence.
The sale of the project also remains subject to Aviva shareholder approval being obtained at a shareholder meeting, which is expected to be held in July. Aviva’s Chief Executive Officer Lindsay Reed said: “Aviva is very pleased with the progress of these transactions. We will work closely with African Energy and Mawana to complete the remaining conditions precedent as soon as possible and we believe these transactions are beneficial for Aviva shareholders”. Aviva will continue to keep shareholders apprised regarding the satisfaction of the remaining conditions precedent to these transactions.
Aviva is a resource development company listed on the Australian Securities Exchange and the Botswana Stock Exchange, with its head office in Perth. The Company is well funded, and has a clear strategy to identify and develop early resource opportunities which are well located to demand and infrastructure. The Aviva management team has strong resource and capital market expertise, with proven expertise in the delivery, generation, exploration, approval and development of resource projects.
