USD 10m agreement with Forsys

16 Jan 2007 07:01

Weatherly International PLC16 January 2007 Weatherly International plc (the "Company") WEATHERLY INTERNATIONAL COMPLETES THE DISPOSAL OF NON-CORE MINING INTERESTS FOROVER US$10 MILLION Weatherly International plc ("Weatherly") is pleased to announce that it hascompleted an agreement for the sale of two non-core assets in Namibia, namelythe Khorixas mining lease and the entitlement to the 15% stake in the OndunduJV, both held by Weatherly's Namibian subsidiary, Ongopolo Mining and ProcessingLimited ("Ongopolo"). The assets have been acquired by TSX-listed explorationand development company, Forsys Metals Corp ("Forsys"). In addition, the optionto acquire the remaining 10% of the Valencia Prospect Licence also held byOngopolo has been exercised and is now 100% owned by Forsys. In consideration for the transfer of these assets, the Weatherly Group hasreceived 2 million shares in Forsys plus a cash payment of US$1 million. Given today's share price of Forsys, the total value of the transaction is inexcess of US$10 million. The Chief Executive Officer, Mr Webster said "We are delighted to have been ableto further cement our relationship with Forsys and to acquire a valuable stakein that company. This transaction has further served to consolidate Weatherlyas a major player in the African mining industry with its widening range ofcopper, zinc and uranium assets." Separately, Ongopolo and one of the Forsys group companies have also enteredinto a joint venture for the exploration and development of the Elbe copperprospecting licence in Namibia. For further information contact: Weatherly International plcJohn Norris +44 (0) 20 7917 2989 Libertas Capital Corporate FinanceStephen Pickup +44 (0) 20 7569 9650 This information is provided by RNS The company news service from the London Stock Exchange