Business
Disposal & Board Change
Disposal & Board Change.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \nRNS Number : 2352M African Mining & Exploration PLC 22 August 2013 \n\n22 August 2013\n \nAfrican Mining and Exploration Plc ('AME' or 'the Company')\nStrategic sale of West Africa subsidiary and Board Change\n \nAfrican Mining and Exploration plc (AIM: AME), is pleased to announce the conditional sale to AIM listed Alecto Minerals Plc ('Alecto') of its subsidiary, AME West Africa Ltd ('AME West Africa'), for £1.25m in new Alecto shares. AME West Africa holds, through its subsidiary Caracal Gold Mali SARL, six prospective exploration permits in Mali, including the 207 sq km Kossanto Gold Project.\n \nThe Company is also pleased to announce that David Archer, currently a non-executive director, will be appointed CEO of AME with immediate effect, replacing Mark Jones who will step down from the board of AME to join the board of Alecto as CEO. \n \nHighlights\n· Strategic deal with Alecto to sell subsidiary AME West Africa for 108,695,652 new shares in Alecto, priced at 1.15p, with an aggregate value of £1.25 million\n· AME will also make a further £500,000 cash investment in Alecto:\no £250,000 through subscribing for 21,739,130 new Alecto shares at 1.15p per share; and\no £250,000 through subscribing for 12 month Alecto convertible loan notes. \n· Following completion of the transaction, AME will hold in aggregate 130,434,783 Alecto shares, representing 26.7% of Alecto's issued share capital.\n· Transaction enables AME to maintain significant exposure to these highly prospective gold licences whilst eliminating funding requirements\n· AME to retain an existing net smelter royalty of 1% on the first 300,000 ounces gold produced from AME West Africa's licence areas payable in cash\n· Alecto has an extensive portfolio of gold exploration projects in Ethiopia and an Iron-Oxide-Copper-Gold ('IOCG') exploration project in Mauritania, as well as a number of strategic alliances\n· AME retains a portfolio of wholly-owned prospective assets, including the 250 sq km Karan Gold Project in southern Mali\n· Active investment strategyin place to further develop the business and build shareholder value through strategic acquisitions\n· Strong Boa...