Approval for Alba Acquiring up to 100% of Amitsoq

RNS Number : 2473X

Alba Mineral Resources PLC

20 February 2017

 

20 February 2017

Alba Mineral Resources plc

("Alba" or the "Company")

Greenland Government Approves Alba Acquiring up to 100% Ownership

of Amitsoq Graphite Project, Southern Greenland

Alba Mineral Resources plc (AIM: ALBA) is pleased to announce that the Mineral Licensing and Safety Authority ("MLSA") of Greenland has confirmed that the Government of Greenland has now formally approved the indirect transfer to Alba of exploration licence 2013/06, comprising the Amitsoq Graphite Project in Southern Greenland (the "Project").  As announced on 1 November 2016, having earned the right to a 49 per cent interest in the Project, Alba had further agreed, subject to regulatory approvals from the Greenlandic authorities, to acquire a further 41 per cent interest in the Project to take Alba to 90 per cent ownership in total.

George Frangeskides, Alba's Executive Chairman, commented:

"We are delighted to receive the approval of the Government of Greenland to Alba acquiring up to 100 per cent ownership of the Project.  We are very grateful to the MLSA and the Government of Greenland for their efficient and timely consideration of the transfer application, the approval of which has been given well in advance of the forthcoming 2017 field season.  This provides Alba with a strong foundation as we continue to plan our work programme for this year and look to build on the significant steps forward we have made in relation to the Amitsoq Project over the past 12 months." 

Completion terms                        

This Government approval having been given, Alba will now proceed to complete the acquisition of the further 41 per cent interest in the Project (by the transfer of shares in the licence holder, Obsidian Mining Limited) for the balance of the purchase price owed, being £90,000 payable in cash or Alba shares (at a 20 trading day volume weighted average price) at Alba's election but with a minimum of 50 per cent in cash unless otherwise agreed.  Alba will thereby become the owner of 90 per cent of the Project.

As from completion of the acquisition, Alba will also take over the existing put and call option over the 10 per cent free carried interest held by a minority shareholder in the Project.  This will enable Alba to move in future to 100 per cent ownership of the Project.

For further information please contact:

Alba Mineral Resources plc Michael Nott, CEO	[phone]
Cairn Financial Advisers LLP James Caithie / Liam Murray	[phone]
Dowgate Capital Stockbrokers Limited Jason Robertson / Neil Badger	[phone]

About Alba

Alba holds a 15 per cent interest in Horse Hill Developments Limited, the company which has a 65 per cent participating interest and operatorship of the Horse Hill oil and gas project (licences PEDL 137 and PEDL 246) in the UK Weald Basin. Alba is also earning a 5% interest in Production Licence 235, which comprises the producing onshore Brockham Oil Field.

Alba has earned the right to a 49 per cent interest in the Amitsoq Graphite Project in Southern Greenland and, having now received the approval of the Government of Greenland to acquire up to 100 per cent ownership of the Project, will shortly complete the acquisition of a further 41 per cent interest taking the Company's ownership to 90 per cent.

In addition, the Company recently renewed its Limerick base metal licence in the Republic of Ireland until May 2018.  The Company has applied for the reissue of a uranium permit in northern Mauritania.  The new Mauritanian permit will be on a reduced area, and is centred on known uranium-bearing showings.

Alba continues actively to review and discuss numerous other project opportunities which have value-enhancing potential for the Company whether by bolt-on or stand-alone acquisition, farm in or joint venture in a range of jurisdictions around the world.

 

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