Asa Resources Regulatory News (ASA)

21 May 2007 07:04

Mwana Africa PLC21 May 2007 Mwana Africa completes the acquisition of Gravity Diamonds London, 21st of May 2007 - Mwana Africa PLC ("Mwana"), the pan-African resourcecompany announces the completion today of the acquisition of Gravity DiamondsLimited ("Gravity") and admission of 13,711,132 new Mwana's ordinary shares("Mwana Shares") to the AIM Market of the London Stock Exchange. The new MwanaShares have been issued as consideration to certain Gravity shareholders, withthe balance of the consideration payable in cash of approximately AUS$21.23m. Completion of the acquisition follows the implementation of two schemes ofarrangement between Mwana and Gravity. The first scheme of arrangement was withrespect to Gravity's ordinary shares ("Gravity Shares") under which Mwanaacquired all of the issued share capital of Gravity. 72,101,803 Gravity Shareswere acquired by Mwana for a consideration of AUS$0.28 per Gravity Share with afurther 54,844,339 Gravity Shares being acquired by Mwana in consideration forthe 13,711,132 Mwana Shares issued to Gravity shareholders who had made thescrip election under the scheme of arrangement. The second scheme is in respectof 6,564,544 Gravity ASX-listed options under which those listed options weretransferred to Mwana for AUS$0.06 per Gravity listed option. Further, Mwana hasalso acquired unlisted Gravity options pursuant to private agreements with theholders thereof for cash consideration of between AUS$0.01 and AUS$0.09 perunlisted option. Oliver Baring, Executive Chairman of Mwana, said: "With this acquisition Mwana continues to consolidate its already strong landposition in the prolific Kasai craton in the DRC. We are very pleased to beadvancing our strategy and now look forward to making further progress withcreating a significant new diamond exploration and production business incentral and southern Africa." Enquiries: Oliver Baring, Executive Chairman Tel: 020 7654 5588Mwana Africa plc Tom Randell / Maria Suleymanova Tel: 020 7653 6620Merlin This information is provided by RNS The company news service from the London Stock Exchange