Nyota Minerals Regulatory News (NYO)

26 Feb 2007 08:12

Dwyka Diamonds Limited26 February 2007 DWYKA SUBSIDIARY DANYLAND LIMITED CONCLUDES AGREEMENT WITH RESOURCE MAJOR TO EARN AN INTEREST IN MUREMERA NICKEL PROJECT - BHP Billiton to invest US$5,200,000 worth of exploration expenditure on theMuremera nickel project in Burundi to earn an interest of up to 50% in DanylandLimited ("Danyland"), Dwyka's wholly-owned subsidiary. - Investment to be carried out in accordance with agreed exploration programme. - BHP Billiton equity to be earned in stages (10% + 20% + 20%) on completion ofinvestment obligations attributable to the relevant stage. - Investment expected to carry project through to concept study. Dwyka Diamonds Limited ("Dwyka" or "the Company") (London AIM & ASX) todayannounced that it had signed an Earn-in and Shareholders Agreement ("Agreement")with BHP Billiton pursuant to which BHP Billiton has agreed to spendUS$5,200,000 on the Muremera nickel project in Burundi in order to earn ashareholding of up to 50% in Danyland which holds the exploration rights fornickel and associated minerals in a target known as Muremera. The Muremeratarget area is located within 2 km from the Xstrata/Barrick Kabanga Project, oneof the largest known undeveloped nickel sulphide deposits in Africa. Under the Agreement, BHP Billiton investment will be done in 3 stages asfollows: - during the first stage, BHP Billiton will invest US$1,200,000 on initialexploration activities in order to earn a 10% equity in Danyland; - during the second stage, BHP Billiton will invest US$2,000,000 on targettesting in order to earn a further 20% equity (total 30%); and - during the third stage, BHP Billiton will invest a further US$2,000,000 onresource definition and the completion of a concept study in order to earn theremaining 20% equity (up to a total of 50% interest in Danyland). BHP Billiton may withdraw from the project during or after completion of any ofthe stages, but if it withdraws during a particular stage it retains only theequity earned by virtue of having completed the previous stage. The projectwill be managed by the Danyland board of directors on which Dwyka and BHPBilliton will have equal representation. Once BHP Billiton has fully satisfied its earn-in obligations, the parties willcontribute to further development of the project in proportion to theirpercentage shareholdings in Danyland. Normal default and dilution provisionsapply where a party fails to meet its share of project funding. Commenting on the signing of the Agreement, Melissa Sturgess, Executive Chairmanof Dwyka said: "The conclusion of a deal such as this with BHP Billiton is excellent news forDwyka shareholders and vindicates our enthusiasm for Danyland's Muremeraproject. This agreement enables Danyland to fast track the explorationprogramme and it also provides access to BHP Billiton's technical and otherexpertise." For further information please contact: Melissa Sturgess (Chairman, Dwyka Diamonds): +618 9324 2955 Adrian Griffin (CEO, Dwyka Diamonds): +618 9324 2955 Richard Brown (Ambrian Partners): +44 207 776 6417 Richard Chase (Ambrian Partners): +44 207 776 6461 Laurence Read/Leesa Peters (Conduit PR): +44 207 429 6605 or +44 7979 955 923 Or visit http://www.dwykadiamonds.com This information is provided by RNS The company news service from the London Stock Exchange