Caf on box media ,great media cover9 Feb 2017 08:53
S Number : 2789W
China Africa Resources PLC
08 February 2017
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China Africa Resources PLC
8 February 2017
China Africa Resources plc
("China Africa" or "the Company" or "CAF")
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Investment Agreement - USA Lithium
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China Africa Resources plc (LON:CAF) the London Stock Exchange AIM listed natural resource exploration and development company is pleased to announce it has signed an Investment Agreement with US Lithium� (Pty) Ltd ("USL"), a private Australian company, to acquire up to a 47.5% shareholding in USL.�
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USL has interests in lithium exploration licences in Arizona and New Mexico held through a 100% owned subsidiary company registered in the United States of America ("USA"). Further details in respect of USL and specifically its USA lithium interests are provided below.
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Shareholders should note that this transaction does not constitute a reverse takeover under the AIM Rules and consequently China Africa must continue to seek to complete a reverse takeover or face suspension from trading on AIM.
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Paul Johnson, Chief Executive Officer of China Africa Resources plc commented "I am pleased to announce this second investment which continues to build the China Africa business model, this time with the addition of lithium exploration and development interests in the secure operating environment of the United States.
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I would encourage readers to review the project information provided below in respect of both Arizona and New Mexico lithium projects.
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The funds from the initial investment by CAF will be used directly to fund a follow-up exploration programme which the US Lithium team are currently finalising.� This planned work will generate systematic exploration data to further the knowledge of the four projects and will seek to qualify the exploration targets in advance of any future drilling programme.� �
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The historic exploration data from all four projects is encouraging and the presence of the historical lithium and tantalum workings in the New Mexico Project are�particularly interesting.� We look forward to relaying the findings from the US Lithium programme and related material developments as they occur.
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China Africa will continue to investigate further opportunities and has a number under advanced review.� There of course can be no certainty that any commercial transactions will be undertaken until crystallised and published via regulatory announcement."
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Investment Agreement - Key Financial Terms
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Initial 25%:
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CAF to is to acquire a 25% holding in USL with consideration to comprise cash and CAF equity as follows: