Aviva Corporation Ltd says that following receipt of Ministerial approval in Botswana, its wholly-owned subsidiary Mmamantswe Coal Pty Ltd, is now the registered holder of 100% of the Prospecting Licence under which the Mmamantswe Coal Project is operated.
Aviva announced on 29 April 2013 that it had entered into a conditional agreement with African Energy Resources Limited to sell the project forA$3.5 million and subsequently entered into binding sale documentation in late May 2013.
By acquiring 100% of the licence, Aviva has now satisfied one of the two outstanding conditions precedent to the sale of the Project. The only condition precedent that remains outstanding, is Aviva shareholder approval at a shareholder meeting scheduled for 9 July 2013.
Acquiring 100% of the Licence was the subject of a separate transaction with Mawana Minerals (Proprietary) Limited, the details of which were announced on 6 May 2013. Under this transaction, Aviva will now make a further payment of US$270,000 to Mawana following an initial payment of US$30,000 in May 2013.
Aviva’s Chief Executive Officer Lindsay Reed said the company is happy to have obtained ministerial approval satisfying another condition precedent to the sale of the Mmamantswe Coal Project, and completing the purchase transaction with Mawana.
“Aviva believes consolidation of coal resources in Botswana is important for the development of the coal sector. The transaction is a good outcome for Aviva shareholders, but also enhances the sector development outlook for African Energy and Botswana,” Reed said. “I would like to acknowledge the Botswana government for dealing with this approval in the efficient and timely manner we have become accustomed to over the years”.
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.
