19 Jun 2012 11:30
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development
19 June 2012
Alecto Minerals plc ('Alecto' or 'the Company')
Extension of Option Agreement re. the Acquisition of Shares in Forward Africa Resources S.A.
Alecto Minerals plc, the AIM listed multi-commodity exploration and development company with projects in Ethiopia and Mauritania and the right to acquire a highly prospective bauxite asset in Guinea, announces that the Option Agreement in respect of the acquisition of shares in Forward Africa Resources S.A. ('FAR') has been extended until 18 September 2012. FAR holds the 711 sq km bauxite licence 223 ('Licence 223'), which has the potential to host an in-situ bauxite resource of over 500 million tonnes, further details of which are contained in the Company's announcement dated 23 February 2012.
Alecto is pleased to report that it has completed full due diligence on FAR and is satisfied with the findings. The Guinean Minister of Mines has commissioned an independent audit of all mineral licences in the country to verify that work programmes have been executed in accordance with the plans submitted to the licensing authority ('the CPDM'). The mandate for this work was awarded to KPMG, which has teams in the field visiting all mineral licences. Members of the Alecto professional team hosted a visit by KPMG to Licence 223 some weeks ago and were able to evidence previous work and discuss Alecto's plans for developing the project.
Feedback after the visit is that KPMG was satisfied with its findings and will be submitting a positive report to the CPDM in respect of FAR. Additionally Alecto, along with FAR's representatives, has submitted the necessary work programme and retrocession plan for the next two year extension of the licence to the CPDM, all of which have been accepted. The Alecto team has met with the Minister of Mines and all other relevant authorities to explain its development plans for Licence 223, which were well received. In line with this, consent from the CPDM is expected within the next six weeks.
Alecto Managing Director Damian Conboy said, "Our commitment to this prospective licence is unwavering and with this in mind we have completed the appropriate audits in compliance with government requirements and maintained regular contact with the government, which is dedicated to the development of near term production projects. We look forward to receiving formal Ministerial approval over the next 90 days.
"In the meantime, we will focus on utilising our recently raised funds to advance our Mauritanian Iron Oxide Copper Gold Licences, as well as our Ethiopian Gold Assets, in line with our strategy to build value for shareholders through exploration in under-explored mineralised regions of Africa. We will update shareholders with regards to our plans in the near future."
**ENDS**
For further information, please visit www.alectominerals.com or contact:
Damian Conboy | Alecto Minerals plc | Tel: 020 3137 8862 |
Ewan Leggat | Fairfax I.S. PLC - Joint Broker | Tel: 020 7598 5368 |
Katy Birkin | Fairfax I.S. PLC - Joint Broker | Tel: 020 7598 5368 |
Jonathan Evans | Fox-Davies Capital Ltd - Nominated Adviser & Joint Broker | Tel: 020 3463 5000 |
Elisabeth Cowell | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
Notes:
Alecto Minerals plc is an AIM listed exploration company focussed on Africa with a diverse portfolio of exploration assets in Mauritania and Ethiopia. Also, the Company is currently conducting due diligence on the 711 sq km bauxite licence 223 located in the highly prospective south west coastal region of Guinea which already has established infrastructure and producing bauxite operations. The Company believes the project has the potential to host an in-situ bauxite resource of over 500 million tonnes.
Additionally, in Mauritania, it has three gold and base metal development licences totalling 1,902 sq km and two uranium licences totalling 1,592 sq km in the highly prospective Mauritanide mobile belt. It also holds the 1,953 sq km gold exploration licence in the highly prospective Aysid-Metekel region of north western Ethiopia and the 945 sq km Wayu Boda gold licence in the mineral-rich central-southern Adola greenstone belt in southern Ethiopia.
The Company is committed to conducting exploratory work across its portfolio, designed to strengthen its knowledge of the assets and delineate targets for further exploration. In tandem, the Board continues to evaluate a number of synergistic assets to build shareholder value.