Aviva Corporation Ltd says following receipt of Kenyan Competition Authority approval, it has now completed the sale of Aviva Mining (Kenya) Limited to African Barrick Gold Plc.
The initial A$20 million received by Aviva for the sale of AMK equates to approximately 12 cents per issued Aviva share and reflects the net proceeds for this transaction. Aviva will receive an additional A$10 million in cash from the sale if a National Instrument 43-101 compliant indicated resource of 3 million ounces or more is declared over AMK’s project areas at any time in the future.
If triggered, this further payment equates to an additional 6 cents per share based on Aviva’s current issued share capital. AMK held all of Aviva’s Kenyan assets, which included the gold and base metal interests which were held through joint ventures with Lonmin Plc. and Advance Gold Corporation. Aviva has spent approximately A$8 million on these Kenyan assets since its initial acquisition.
The sale of AMK to ABG has generated an excellent return on this investment for shareholders in approximately 2 years.
Aviva Chief Executive Officer Lindsay Reed said: “Aviva is very pleased to have completed the sale of AMK to ABG and to have realised a substantial return on this investment. I would like to acknowledge the efforts of everybody that was involved in completing this transaction and wish ABG all the best in developing the assets of AMK. Aviva is now well placed with a strong balance sheet to take advantage of new opportunities, some of which are already under review.”
Aviva Corporation Ltd, the Botswana Stock Exchange listed company said it has received Kenyan Competition Authority approval for the sale of Aviva Mining Kenya Limited to African Barrick Gold plc.
On 23 July 2012 Aviva announced that it had entered into a binding sale and purchase agreement with ABG for the sale of AMK for an initial cash payment of A$20 million.
Under the SPA, there is a further payment of A$10 million due to Aviva if a National Instrument 43-101 compliant indicated resource of 3 million ounces or more is declared over AMK’s project areas.
The approval of the KCA satisfies the last remaining condition precedent to the SPA.
Aviva expects that completion of the sale of AMK will be achieved within one week. On completion of the sale of AMK, ABG is required to make the initial cash payment of A$20 million to Aviva.
Aviva Chief Executive Officer Lindsay Reed said: “Aviva is delighted that the final condition precedent to the sale of AMK to ABG has been satisfied. We will work closely with ABG to achieve completion of the transaction as soon as possible. Aviva is continuing to consider their strategic growth options and opportunities both inside but also outside of Botswana”.
Aviva will inform shareholders as soon as completion of the transaction is achieved.
Aviva Corporation Limited is a resource development company listed on the Australian Securities Exchange and the BSE, 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.
In Africa, the company has been exploring for gold and base metals at its West Kenyan joint venture project with AfriOre International Ltd, a subsidiary of Lonmin Plc. Aviva also has an interest in a coal-based energy asset – the Mmamantswe project in Botswana.