19 Jun 2008 07:00
FOR RELEASE7.00 AM19 June 2008 SIRIUS EXPLORATION PLC ("Sirius Exploration" or "The Company") Sirius Exploration acquires and explores mineral properties
SIRIUS EXPLORATION SECURES OPTION ON WORLD'S LEADING CHINESE TUNGSTEN PRODUCER
BISHOP MINE Sirius Exploration granted an option to acquire tungsten mining and production assets in Jiangxi Province and Guangxi Province in China
Initial interest of 10% to be acquired for ‚£6 million in ordinary shares of Sirius Exploration, which have been valued at 22 pence per ordinary share,plus
‚£2 million in cash
Sirius Exploration announces that it has been granted an option (at the Company's call) to purchase up to 25% of the equity of certain tungsten production assets in Jiangxi Province and Guangxi ("Target Assets") from CIC Mining Resources Limited ("CICR") and Judian Group Shareholders (the "vendors").
Currently the Target Assets are in trial production with full production expected to commence in 2009. All exploration and mine construction has been completed.
Subject to due diligence, the initial interest of ten percent of the Target Assets will be sold to Sirius Exploration for six million pounds payable in ordinary shares of Sirius Exploration, which have been valued at twenty-two pence per ordinary share, plus two million pounds cash payable out of future capital raising. The cash payment may be converted into shares in Sirius Exploration if CICM elects to do so also at twenty-two pence.
The further 15% of equity to take the total purchased by Sirius Exploration to 25% will be on the same cash pricing terms (six hundred thousand pounds for each percent) as the initial tranche.
The cost of the option will be satisfied by the Company issuing 1.2 million ordinary shares to persons nominated by the vendors. The Company is required to comply with the provisions of section 596 Companies Act 2006 before issuing and allotting the 1,200,000 new ordinary shares under the option agreement and a further announcement will be made in due course regarding this issue.
Mr. Richard Poulden, theChairman,comments:
"This transaction potentially makes Sirius Exploration a producerandit delivers,despite our current share price,a transaction at twenty-two pence. The relationship with the vendor opens up opportunities to some of China's leading private mine owners without the need to spend many years in China gaining the necessary navigation experience required to close off transactions like the Bishop Tungsten Mine. Further Sirius Exploration will have a Chinese business entity that it can use to apply for equity finance from the US$5 Billion mine fund of the China Development Bank."
Sirius Exploration will have first option to purchase additional equity interest in any Tungsten mine production assets controlled by the vendors.
The Company also announces that, on 18 June 2008, it issued 258,041 ordinaryshares to Duke Holdings Limited at a price of 2.5p, taking Duke HoldingsLimited's total holding to 4,733,333 ordinary shares representing 5.4% of theissued share capital.For further information:Sirius Exploration Plc Richard Poulden (Chairman) Mobile: 07879 447 601 richard.poulden@siriusexploration.com Jonathan Harrison (Financial Director) Mobile: 07879 887 755 Beaumont Cornish Roland Cornish (Chairman) Tel: 020 7628 3396 Cubitt Consulting
Brian Coleman-Smith / James Verstringhe / Nicola Tel: 020 7367 5100 Krafft
Website: www.siriusexploration.com Sirius Exploration Share Price
vendor