Operational Update and Suspension of Trading in Shares
January 30 2009 - 8:01AM
UK Regulatory
TIDMMVA
AIM
Release
30 January 2009
Minerva Resources Plc (AIM:MVA)
('Minerva Resources' or 'the Company')
Operational Update and Suspension of Trading in Shares
The Directors of Minerva Resources plc ("Minerva Resources" or "the
Company") are pleased to announce that a Sale and Purchase Agreement
has been signed for the disposal of its wholly owned subsidiary
Palladex Limited (Samoa) and its subsidiaries Palladex Geotechservice
LLC, Kyrgyzstan, and the Representative office of Palladex Limited in
Azerbaijan to their management for the consideration of US$79,208 and
the repayment of loans to the value of US$420,792. The Company will
write off the outstanding loan amount of US$852,494 in conjunction
with the above transactions. Palladex Limited and Palladex
Geotechservices LLC provide geotechnical and drilling services to
exploration and mining companies in the Krygyz Republic, the Republic
of Kazakhstan and the Republic of Azerbaijan. In the year ended 30
September 2007 the business had attributable profits of GBP114,137.
The funds achieved through the agreement will provide Minerva
Resources with additional short term working capital. As mentioned at
the time of the placing on 17 September 2008, the Company anticipated
that it would need to raise further funds in the first quarter 2009.
Whilst the proceeds will allow the Company to meet its liabilities
and commitments until late quarter one 2009, the Company will require
further funds to continue to operate.
The resource drilling programme at Tulu Kapi will be completed in
early February. The data from the drilling programme needs to be
compiled, assessed and a resource calculation undertaken, which is
expected to be carried out over the next two months. During this
time, all other exploration activities will be minimised.
Given the current very difficult climate for small exploration
companies to raise money on the equity market, the Directors have
resolved to enter into a Company Voluntary Arrangement ('CVA') to
enable a longer timeframe to seek the necessary additional funding
required to continue operating the Company as a going concern. Should
the creditors and members vote in favour of a CVA, the Company will
be protected for a longer period from creditor pressures. The
Directors and management are looking at all avenues for future
funding arrangements or other strategic options.
The disposal of Palladex Limited is conditional on the approval of
shareholders in accordance with Rule 15 of the AIM Rules for
Companies. A general meeting of shareholders has been convened for
Wednesday 25th February to approve the disposal. A circular and
notice of General Meeting is being sent to shareholders shortly and
includes proposals to sub-divide the Company's share capital and to
adopt new articles of association. It will be available on the
Company's website at www.minervaresources.com
The disposal is a related party transaction under the AIM Rules, as
one of the purchasers is a Director of the Company's subsidiaries
Palladex Limited and Palladex Geotchservice LLC. The Directors
consider, having consulted with its nominated adviser, that the terms
are fair and reasonable insofar as its shareholders are concerned.
In light of the Company's intention to enter into a CVA, the company
has requested a suspension, with immediate effect, of its shares from
trading pending clarification of its ongoing financial position.
The company will provide an update on the proposed CVA in due course.
For further information please contact:
Terry Ward
Minerva Resources plc
Tel: +44 (0)20 73795012 / (0) 7989571576
terry.ward@minervaresources.com
web: www.minervaresources.com
Nick Rome
Bishopsgate Communications Ltd
Tel: +44 (0)20 7562 3350
minerva@bishopsgatecommunications.com
James Joyce / Sarang Shah
W. H. Ireland
Tel: +44 (0)20 72201666
james.joyce@wh-ireland.co.uk
Notes to Editors
Minerva Resources plc is a UK based mineral exploration and
development company quoted on London's Alternative Investment Market
(AIM:MVA). The Company is intent on delivering shareholder value by
increasing and developing its mineral resources in a socially and
environmentally responsible manner.
The main focus is resource development in Ethiopia where the Company
has first-mover advantage on prospective ground on the Arabian-Nubian
shield. Key projects include the gold resources at the Tulu Kapi,
Gudeya-Guji, Guji and Dina Prospects and the Yubdo Platinum Mine,
located in western Ethiopia, some 560km west of Addis Ababa.
Tulu Kapi was mined in the 1930s by an Italian company. In the 1970s,
the United Nations Development Programme mapped and drilled Tulu
Kapi. Tan Range Exploration carried out soil sampling, further
mapping and drilling in the 1990s. These two phases of work confirmed
mineralisation extending over a strike length of 1.5km.
Minerva Resources has completed 30 diamond drill holes to date, at
Tulu Kapi, on its resource drilling programme on a 600m section,
after encouraging Minerva Resources ground mapping, data
reinterpretation and excellent scout drilling results.
Scout drilling programmes have been completed at the Gudeya-Guji,
Guji and Dina gold prospects, which are located in close proximity to
Tulu Kapi. The drilling has shown mineralised intersections on all
three prospects.
The results from the drilling on Tulu Kapi, which are shown in the
latest drilling report announcement on the Company's website,
www.minervaresources.com, and the satellite prospects and their close
proximity point towards a new gold province with the potential for
the establishment of a 'one treatment plant - multiple feed
scenario'.
The Company is examining the potential to expand the small scale
platinum production operations at Yubdo, some 25km from the Tulu Kapi
Project. A pilot gravity recovery plant has been installed, a
metallurgical research programme has been initiated and further
exploration activities have commenced on the 9km by 1.5km surface
expression of the orebody.
In Sierra Leone, the Company holds gold, platinum and diamond
exploration licences, which will for the most part continue to be
developed by existing Joint Venture partners.
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