Business
Completion of strategic sale of AME West Africa
Completion of strategic sale of AME West Africa.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7827P Savannah Resources PLC 04 October 2013 \n\n \nDate: 4 October 2013\nSavannah Resources Plc\n \n(\"Savannah\", \"SAV\" or \"the Company\")\n \nCompletion of strategic sale of West Africa subsidiary to Alecto Minerals Plc\n \nFurther to the announcements made on 22 August 2013 and 17 September 2013, Savannah Resources Plc (AIM: SAV), announces, the completion of the disposal of the entire issued share capital of its subsidiary, AME West Africa Ltd ('AME West Africa') to AIM listed Alecto Minerals Plc ('Alecto') (the \"Sale\") following the satisfaction of all outstanding conditions.\nDavid Archer, the Company's CEO commented: \"The conclusion of the Sale to Alecto has securitised the Company's investment in the highly prospective Kossanto Gold Project in a manner which eliminates the associated exploration funding requirements and contingent obligations to the original vendor of Kossanto, whilst providing Savannah with continued exposure to the upside potential of the project. It also provides Savannah with exposure to the highly prospective Wayu Boda and Aysid Meketel gold/base metal projects in Ethiopia. The attractiveness of these projects has been underscored by a recently announced joint venture between Centamin Plc and Alecto, under which Centamin Plc is committing up to a total of US$14m in exploration funding to earn up to 70% of each project''. \nAs a result of the Sale and Savannah's subscription for new shares and a convertible loan note in Alecto, Savannah will hold a total of 121,739,130 shares in Alecto or 24.9% of its total enlarged issued share capital together with £350,000 of convertible loan notes which, upon conversion, would increase Savannah's ownership in Alecto's issued share capital by a further 5.9%. Savannah has undertaken not to convert the convertible loan notes to the extent conversion will trigger the obligation to make a mandatory offer under Rule 9 of the City Code on Takeovers and Mergers.\n**ENDS**\n \nFor further information please visit www.savannahresources.com or contact:\n\n\n\n\nDavid Archer\n\n\nSavannah Resources plc\n\n\nTel: +44 (0)774 777 7914\n\n\n\n\nJames Maxwell / Jenny Wyllie\n\n\nN+1 Singer\n\n\nTel: +44 (0)20 7496 3000\n\n\n\n\nNotes\nAbout Savannah\nSavannah Resources Plc (AIM: SAV) is a multi-commodity focussed explo...