Ovoca Resources PLC
17 December 2003
Ovoca Resources Plc (OVG.I Dublin and OVG.L London)
Date: 17 December 2003
Ovoca Completes Acquisition of Swedish Gold Properties from MinMet
Ovoca Resources plc ("Ovoca") announces that it has completed the purchase of
Klippen Guld AB, a Swedish exploration company with a number of gold exploration
concessions in Northern Sweden from Minmet plc ("MinMet").
Ovoca will issue as consideration for the acquisition 11m new Ovoca shares ("
Consideration Shares") to MinMet, representing approximately 22.5% of the
enlarged share capital of Ovoca. The Consideration Shares have restrictions on
their future disposal. MinMet will be represented by two directors whom have
been co-opted onto the Board of Ovoca, Jeremy Metcalf and Jeremy Martin. Jeremy
Martin, a geologist, will be our Chief Operations Officer on the ground in
Sweden and Jeremy Metcalf brings a lot of experience and contacts in the mining
and exploration sector to Ovoca.
MinMet will also supply logistical and administrative support to Ovoca's Swedish
operations from its base at the Bjorkdal gold mine, near Skelleftea, in Northern
Sweden.
The Swedish Properties include concessions at Klippen (1,602ha), Krokliden
(2,350ha) and Umgransele (2,965ha). In addition, four new concession areas
identified for their gold mineralisation by MinMet from its exclusive
geochemical database of Sweden are in the process of being transferred to
Klippen Guld AB.
This purchase opens up the opportunity for Ovoca to actively explore for gold in
an area of Northern Sweden termed the "gold line" where it now holds a number of
promising concessions including Klippen and Krockliden. Krockliden is close to
the Svartliden gold deposit (1.4Mt @ 5.7 g/t) owned by Dragon Mining N.L. which
was permitted in August 2003 by the Swedish authorities. The Krockliden licence
is less than one kilometre east of Dragon's gold mine.
The Klippen project, where previous trenching has encountered 6.4 g/t gold over
a 5 metre interval and 2.3 g/t gold over a 20 metre interval with greater than
1% copper will be the subject of extensive field work over the next few months
with a view to identifying suitable drill targets by April/May 2004.
Commenting on the acquisition of Klippen Guld AB from MinMet, Ovoca Chief
Executive Officer, Richard O'Shea said, "We are pleased to have succeeded in
acquiring these highly prospective gold properties along the emerging "Gold Line
" in the Skelleftea belt in Northern Sweden. We are encouraged by the
geological potential of the area, as evidenced by Dragon Mining N.L.'s receipt
of approval to proceed with the development of their Svartiliden gold property,
adjacent to Ovoca's Krockliden concession, one of the licences purchased by
Ovoca."
ENDS
For further information
Richard O'Shea CEO - Ovoca Resources plc Ph : 00 353 87 256 0397
John O'Connor CFO - Ovoca Resources plc Ph : 00 353 1 491 2944
This announcement has been issued through the Companies Announcement Service of
The Irish Stock Exchange
This information is provided by RNS
The company news service from the London Stock Exchange
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