this explains the 1.2 jorc3 Nov 2017 11:42
Reference is made to the voluntary announcement (Announcement) of MMG Limited (Company or MMG)
dated 29 October 2012 in relation to the agreement entered into by two of the Company�s wholly-owned
subsidiaries, Anvil Mining Limited (Anvil Mining) and MMG Africa Investments Limited (formerly known as
Anvil Mining Investments Limited) (MMG Africa) granting an option to Casa Mining Limited (Casa Mining)
to acquire the entire issued share capital of the DRC incorporated entity Leda Mining Congo Sprl (Leda)
from Anvil Mining and MMG Africa (Original Agreement).
The Company today announced that Anvil Mining, MMG Africa and Casa Mining have signed an
amendment deed to the Original Agreement.
As disclosed in the Announcement, under the Original Agreement Casa Mining was obligated to pay to
Anvil Mining and MMG Africa, on exercise of the Option, US$5 million plus a further payment (Discovery
Payment), calculated as set out below, should certain criteria be met.
The Original Agreement as amended will allow Casa Mining to pay the Option exercise price due in two
tranches (each a Tranche). The first Tranche will be a total of US$3 million due upon completion of the
exercise of the Option. The second Tranche of US$2 million and the Discovery Payment (if any) is to be
paid by Casa Mining no later than 365 days from the date of the notice whereby Casa elects to exercise
the Option under the Original Agreement.
About Leda
Leda is part of the Anvil Mining group acquired by MMG in February 2012. Leda is the sole registered
and beneficial holder of eleven gold exploration licences (Permis de Recherches or exploration permits �
the PR�s) in the DRC. Five of the PR�s (Project Area), located in the South-Kivu province of the DRC, are
the subject of an unincorporated joint venture (established through an earn-in agreement (Earn-in
Agreement)) between Anvil Mining and CASA Resources Limited, a wholly-owned subsidiary of Casa
Mining, an unlisted exploration company and an independent third party not otherwise connected to
MMG.
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MMG�s investment in Leda is non-core and does not fit within MMG�s current commercial focus.
About the Option
Exercise of the Option is conditional on (i) the release of a resource statement prepared under the JORC
Code by Casa Mining and (ii) entry into a deed of termination and release in respect of the Earn-in
Agreement.
The Discovery Payment will be triggered if, prior to the exercise of the Option, Casa Mining should
publish or classify exploration results in respect of the Project Area with a total mineral resource
(calculated as the aggregate of the inferred, indicated and measured resources under the JORC Code) in
excess of 1.2 million ounces of gold.
For every ounce of gold in excess of this threshold, as calculated under the JORC Code (using a 0.5 gram
per tonne gold cut-off) (referred to as �Y�) for the Project Area, the Discovery Bonus will b
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