Asa Resources Regulatory News (ASA)

22 May 2006 07:01

Mwana Africa PLC22 May 2006 MWANA ACQUIRES STAKE IN SOCIETE MINIERE DE BAKWANGA Acquisition marks Mwana's entry into African diamond industry 22 May 2006 Mwana Africa plc ("Mwana"), the pan-African resource company, is pleased toannounce that it has entered into an agreement with Umicore, a major materialstechnology group, whereby Mwana has acquired a 100 per cent interest in theUmicore subsidiary, Sibeka, for a cash consideration of approximately US$11million. Sibeka's major asset is a 20 per cent interest in Societe Miniere de Bakwanga (MIBA), the leading diamond producer based in Mbuji Mayi in the DemocraticRepublic of Congo. MIBA's other shareholder is the Government of DRC. Over thepast five years MIBA has produced an average of 6 million carats of diamonds peryear. MIBA's geological reserves should allow for a substantial enhancement ofthe production and productivity levels of the Mbuji Mayi operations. FurthermoreMIBA has mining and exploration titles covering an area in excess of 45,000square kilometres where it is discussing joint ventures with major diamondproducers. This transaction signals Mwana's entry into the African diamond industry andsignificantly strengthens the Company's interests in the DRC. Mwana is alsopleased to announce that Mr. Etienne Denis has agreed to continue in hiscapacity as a Director of Sibeka to ensure continuity. Mr. Denis brings to Mwanasubstantial experience in mining and diamonds in the DRC. Over the past 10 years Umicore has pursued a strategy of focusing on thedevelopment of speciality materials and has divested its mining assets. The saleof Sibeka is the final part of this process. Commenting on the announcement, Kalaa Mpinga, Chief Executive Officer of MwanaAfrica, said: "This transaction is an important step for Mwana. It strengthens the Group'sportfolio of assets across Africa, and in particular, in the DRC where wealready have considerable presence and expertise. "As an important diamond producer MIBA should deliver significant value for ourshareholders and develop our position in the diamond sector. We aim to be anactive shareholder in MIBA and will engage the government to develop the companyin order to allow it to operate at its optimum capacity. "This agreement supports Mwana's strategy to develop into a major resource groupon the African continent, exploiting opportunities across different countriesand commodities." Enquiries: Oliver Baring, Executive Chairman / Kalaa Mpinga, CEO Tel. +44 207 654 5588Mwana Africa plc David Simonson or Maria Suleymanova Tel. +44 207 653 6620Merlin About Mwana Mwana Africa is a pan-African resource company and the first African owned andmanaged resources business quoted in London. Mwana Africa was formed in October2005 through a reverse takeover by African Gold plc, the AIM quoted African goldexplorer and miner, of a privately held mining company, Mwana Africa Holdings,with operations in Ghana, the Democratic Republic of the Congo and Zimbabwe. Mwana Africa Holdings was established in 2003 by Kalaa Mpinga and completedthree major mining acquisitions: (i) the Bindura nickel mine in 2003, (ii) theAnmercosa base metal and gold prospects in the Katanga copper belt in 2004 and(iii) the Freda Rebecca gold mine in 2005. The shareholder group which fundedthese acquisitions included Kalaa Mpinga, David Fish and Tim Wadeson from SouthAfrica and several prominent members of the business communities in Angola,Kenya, Zambia and Zimbabwe. African Gold was incorporated in 1987 and began by focusing on the developmentof gold resources in Zimbabwe. By the late 1990s, the company had opened threesmall mines in Zimbabwe. By the end of 2002, its business activities in Zimbabwehad largely ceased and African Gold began searching for opportunities elsewherein Africa. In 2003 and 2004, African Gold raised funds and attracted investorsincluding John Anderson, Oliver Baring, Richard Hambro and Hank Slack andsecured the rights over four new gold properties in Ghana. The formation of Mwana Africa group brought together a senior management teamhighly experienced in the mining industry in Africa. This information is provided by RNS The company news service from the London Stock Exchange