Agreement to increase holding in Yubdo Platinum & Gold Development
PLC, Ethiopia
AIM Release
31 March 2008
Minerva Resources Plc (AIM:MVA)
("Minerva Resources" or "the Company")
Agreement to increase holding in
Yubdo Platinum & Gold Development PLC, Ethiopia
Highlights
* Agreement to acquire a further 22% of Yubdo Platinum & Gold
Development PLC
* Commencement of initial stage of a Feasibility Study at Yubdo
Minerva Resources, which holds 51% in Yubdo Platinum & Gold
Development PLC (YPGD) through its wholly owned subsidiary Golden
Prospect Mining Company Limited, has entered into an agreement to
acquire a further 22% interest in YPGD, for a maximum consideration
of US$5 million depending upon the results of stages in the project,
from Ato Benti Tasissa Negewo, who holds 47% of YPGD, upon the
completion of a feasibility study into the viability of a mining and
processing operation to produce a minimum of 50,000 ounces of
platinum per annum.
YPGD operates the Yubdo platinum mine, which is producing platinum on
a small scale with minor by-product gold. The mine is located in the
Yubdo locality, Western Welega Region, Ethiopia, some 550km west of
the capital Addis Ababa.
The principal terms of the agreement for Minerva Resources to acquire
the further 22% holding are as follows:
* Minerva Resources will manage and fund the feasibility study
* Ato Benti Tasissa Negewo will transfer that percentage of his
interest representing 22% of YPGD at the conclusion of the
feasibility study
* Minerva Resources will make the following payments to Ato Benti
Tasissa Negewo under the agreement:
* An initial payment of US$250,000 and 2,802,298 shares in
Minerva Resources at an issue price of 4.5 pence
* A payment of US$1,750,000 upon the completion of a bankable
feasibility study for a project development with a minimum
50,000 ounces of platinum production per annum
* A payment of US$1,750,000 upon the completion of agreements
to finance the construction of the operational facilities
for the project, and
* A payment of US$1,000,000 upon the completion of the
commissioning of the project operational facilities,
including the consistent attainment of the production of
platinum at the project designed output level
Commencement of Feasibility Study at the Yubdo Platinum Operations
The preliminary stage of the initial feasibility study into the
viability of developing a mining and processing operation to produce
at least 50,000 ounces of platinum per annum has commenced, with the
engagement of Coffey International Limited, an international
resources sector consultancy, and Mid - Day International Limited, an
Ethiopian based environmental consultancy group, to commence the
first stage of an Environmental and Social Impact Assessment Study.
Managing Director Terry Ward commented, "This agreement signals the
next stage of development of the Yubdo platinum mine. We are excited
to be taking a larger controlling stake in the operation and
progressing to the first stage of the feasibility study."
For further information please contact:
Terry Ward
Minerva Resources plc
Tel: +44 (0)20 73951939/ (0)7989571576
taw@minervaresources.com
twardafl@yahoo.co.uk
Jane Stacey / Ed Portman
Conduit PR
Tel: +44 (0)20 7429 6606/ (0)7922923306
jane@conduitpr.com
James Joyce
W. H. Ireland
Tel: +44 (0)20 7220 1666
james.joyce@wh-ireland.co.uk
Notes to Editors
Minerva Resources plc is a UK based mineral exploration and
development company quoted on London's Alternative Investment Market
(AIM: MVA). The Company is intent on delivering shareholder value by
increasing and developing its mineral resources in a socially and
environmentally responsible manner.
The main focus is resource development in Ethiopia where the Company
has first-mover advantage on prospective ground on the Arabian-Nubian
shield. Key projects include the gold resources at the Tulu Kapi and
Guji prospects and the Yubdo platinum mine, located in western
Ethiopia.
Drilling programmes are underway at the Tulu Kapi and Guji gold
projects in western Ethiopia. The two projects are 7km apart,
allowing significant sharing of logistics and infrastructure.
Tulu Kapi was mined in the 1930s by an Italian company. In the 1970s,
the United Nations Development Programme (UNDP) mapped and drilled
Tulu Kapi. Tan Range Exploration carried out soil sampling and
further mapping and drilling in the 1990s. These two phases of work
confirmed mineralisation extending over a strike length of 1.5km and
the project is undergoing second phase drilling after encouraging
early Minerva Resources drill results.
The Company also has a presence in Central Asia, operating a
Technical Services Division undertaking contract geology and contract
drilling work from the Kyrgyz Republic. In Sierra Leone, the Company
holds gold, platinum and diamond exploration licences, which will for
the most part continue to be developed by existing Joint Venture
partners.
---END OF MESSAGE---
