Ovoca Bio Regulatory News (OVB)

3 Mar 2005 08:00

Ovoca Resources PLC02 March 2005 NEWS RELEASE March 3, 2005 OVOCA RESOURCES ANNOUNCES MAJOR ACQUISITION OF GOLD EXPLORATION COMPANY NORPLATLIMITED Ovoca Resources Plc (Ovg.i Dublin : Ovg.l London), is pleased to announce thatthey have entered into a heads of agreement to acquire a 78% interest in theshare capital and an option to acquire the remaining issued share capital andwarrants of the private exploration company Norplat Limited. Norplat has twoadvanced prospects in Northern Russia with 900,000 ounces of Gold reported underRussian standards. The transaction, subject to due diligence and regulatory approvals, will involvea transfer of 35,909,091 issued shares of Norplat in return for 39,500,000 Ovocashares. Ovoca will also have the sole option to buy the remaining shares inNorplat within two years on a similar basis. Norplat Limited is an exploration company, which has focused on the acquisitionand development of exploration and mining properties in the Former Soviet Union. It currently holds an exploration license in the Kola Peninsula of NorthwestRussia through its Russian subsidiary, Black Fox Resources, of which it has a95% equity interest. These projects are at an advanced stage of exploration,which includes known gold, platinum group elements (pge), copper, molybdenum andgold porphyry and rare earth prospects. Recent exploration also indicates thepotential to host significant copper nickel mineralisation. A recentindependent competent person's review on the license area reports a resourcebased on historical trenching, drilling and the recent drilling programme, of900,000 ounces of gold under Russian geological resource estimation criteriafrom the two advanced prospects Oleninskoye and Nyalm. Average grade forOleninskoye on current resources is in excess of 13.9 grammes per tonne (g/t)and for Nyalm of 3.7g/t open pitable. The Norplat board includes Mr Roger Turner, Chairman, and Dr Barrie Oakes, CEO,who will be joining the Board of Ovoca on completion of the acquisition. Theyhave a proven track record in the acquisition, exploration and ultimatedevelopment of mining projects in the former Soviet Union and worldwide. Mr.Roger Turner is well known in the mining industry with many years experience insetting up and running successful junior mining companies and developing mines,of which the latest companies include Oxus and Minco. Dr Barrie Oakes has over35 years experience in the mining industry working in North America, Africa,Arabia, Eastern Europe and Former Soviet Union. He has worldwide experience insenior management acquiring evaluating and developing precious and non-ferrousmining projects. The Ovoca board considers the proposed acquisition of Norplat would be anattractive addition to its Scandinavian portfolio and should add significantreportable mineral resources in the near future. The Fennoscandinavian Shieldarea which extends from Norway in the west through to the Kola Peninsula andKarelia in Russia to the East is now recognised as an area of high potential forthe discovery of additional significant precious and base metal deposits. Manywestern senior and junior mining companies are now actively exploring in Norway,Sweden and Finland. Attention is now focussing on Northwest Russia as thelogical eastern extension of the mineral trends being in the rest ofScandinavia. Norplat has established a presence in this area and has identifiedadditional prospective areas for future acquisition. Enquiries Richard O'Shea CEO Ovoca Resources plc + 353 (87) 256 0397 John O'Connor CFO Ovoca Resources plc + 353 (1) 491 2944 This announcement has been issued through the Companies Announcement Service of the Irish Stock Exchange. This information is provided by RNS The company news service from the London Stock Exchange