Share Purchase Agreement and Directorate Changes
LONDON, UNITED KINGDOM -- (Marketwired) -- 11/26/13 -- *T
Amara Mining plc (AIM: AMA)
26 November 2013 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
COMPLETION OF SHARE PURCHASE AGREEMENT WITH AMLIB HOLDINGS PLC AND
Amara Mining plc, the AIM listed West African focused gold mining
company, is pleased to announce the successful completion of the share
purchase agreement (the "Agreement") with Amlib Holdings plc ("Amlib")
for the acquisition of the entire issued share capital of AUMJ Limited,
which was first announced on 07 November 2013. The Company also
announces the appointment of Mr Alexander John Davidson as a
Completion of Share Purchase Agreement with Amlib
Amlib is a privately held gold exploration company with RDV Corporation
("RDV") as its majority shareholder. RDV is a multi-generational
family wealth management business, which has a stated investment
approach of being a long-term supportive shareholder that aligns itself
with groups that offer industry-leading knowledge and capabilities in
various sectors and markets. Under the Agreement, Amara acquired US$10
million cash, Amlib's drilling assets and three exploration licences in
Liberia. The aggregate value of the transaction is US$11.0 million.
The cash will be used in the ongoing progression of Baomahun and the
exploration of Yaoure, solidifying Amara's financial foundation. The
drilling company, Amlib Drilling Services Liberia (a wholly-owned
subsidiary of AUMJ Limited), will significantly reduce the Company's
direct drilling expenditure at Yaoure.
Prior to the transaction, Amara had a producing gold mine, a
feasibility stage project and an advanced exploration project. The
Amlib assets provide the final part of the development pipeline:
early-stage exploration. Since Amara has a strong presence in
neighbouring Sierra Leone, the Company's advancement into Liberia can
be done in a cost effective manner using existing management and
procurement structures, with management's focus remaining on moving
Baomahun and Yaoure along the development curve.
Amara has issued 51,846,782 new ordinary shares of 1p each in the
Company ("Consideration Shares") to Amlib as consideration under the
Agreement. The Consideration Shares were admitted to trading on the
AIM market of the London Stock Exchange, and trading in the
Consideration Shares commenced on AIM at 8.00am today. The
Consideration Shares rank pari passu with the Company's existing
For the purposes of the Disclosure and Transparency Rules, the
Company's total issued share capital comprises 219,960,248 ordinary
shares with one voting right per share. The Company has no shares in
treasury. The above figure may be used by shareholders as the
denominator for the calculations by which they will determine if they
are required to notify their interest in, or a change to their interest
in, the Company, under the Disclosure and Transparency Rules.
Appointment of Alexander Davidson as a Non-Executive Director
Mr Davidson is RDV's nominee following the acquisition of AUMJ Limited
from Amlib. He brings extensive experience to the Company, having
previously served as Executive Vice President, Exploration and
Corporate Development at Barrick Gold, the world's largest gold
producer, with responsibility for international exploration programmes
and corporate development activities.
Mr Davidson has over 25 years' experience in designing, implementing
and managing gold and base metal exploration and acquisition programmes
throughout the world. In recognition of this in April 2005, Mr Davidson
was presented the A.O. Dufresne Award by the Canadian Institute of
Mining, Metallurgy and Petroleum to recognise exceptional achievement
and distinguished contributions to mining exploration in Canada. Prior
to that in 2003, he was named the Prospector of the Year by the
Prospectors and Developers Association of Canada in recognition for his
team's discovery of the Lagunas Norte Gold Project in the Alto Chicama
Mr Davidson received both his BSc. and MSc. in Economic Geology from
McGill University in Canada. He is also a Director of Yamana Gold, an
Americas-focused gold producer with a market capitalisation of
approximately US$7 billion and expected production of 1.3 million
ounces gold equivalent in 2013, as well as Capital Drilling, US Silver&
Gold, Volta Resources, MBAC Fertilizer Corp and Orca Gold.
His appointment follows the completion of the acquisition of AUMJ
Limited from Amlib Holdings plc as announced today.
Peter Spivey, Chief Executive Officer of Amara, commented:"I am delighted
to have completed the share purchase agreement with
Amlib. The transaction will allow us to progress the assets within the
enlarged group to benefit all shareholders, underpinned by the
financial support of RDV. I am also pleased to welcome Alex to the
Board. His wealth of experience with a diverse range of mining
companies will be valuable to Amara as we continue to grow into a
larger, more sustainable producer."
Further details on Mr Davidson are set out as an Appendix to this
For more information please contact:
Amara Mining plc +44 (0)20 7398 1420
John McGloin, Chairman
Peter Spivey, Chief Executive Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor Relations
Canaccord Genuity Limited +44 (0)20 7523 8000
(Nominated Adviser & Broker, London)
Bell Pottinger - Pelham +44 (0)20 7861 3232
(Financial Public Relations)
About Amara Mining plc
Amara is a gold developer-producer with assets in West Africa. The
Company generates cash flow through its Kalsaka/Sega gold mine in
Burkina Faso. Amara remains focused on its objective of becoming a
mid-tier producer through the development of its Baomahun project in
Sierra Leone and its Yaoure project in Cote d'Ivoire. With its
experience of bringing new mines into production and a project pipeline
spanning four countries, Amara aims to further increase its production
profile with highly prospective opportunities across all assets.
Appendix: Alexander John Davidson
In terms of the appointment of Mr Alexander John Davidson (aged 62) to
the Board, there is no further information that is required to be
disclosed pursuant to Schedule 2 paragraph (g) of the AIM Rules for
Companies, save for the following:
Mr Davidson is currently a Director of:
* Yamana Gold Inc.
* Capital Drilling Ltd
* US Silver & Gold Inc.
* Volta Resources Inc.
* MBAC Fertilizer Corp.
* Orca Gold Inc.
In the last 5 years, Mr Davidson has been a Director of:
* Namakwa Diamonds Ltd
* Hana Mining Ltd
* Kobex Minerals Inc.
This information is provided by RNS
The company news service from the London Stock Exchange
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