Aviva Corporation Ltd (ASX: AVA, BSE: AVIVA) ("Aviva" or the "Company") is pleased to announce that it has received Kenyan Competition Authority ("KCA") approval for the sale of Aviva Mining Kenya Limited ("AMK") to African Barrick Gold plc ("ABG").
On 23 July 2012 Aviva announced that it had entered into a binding sale and purchase agreement ("SPA") with ABG for the sale of AMK for an initial cash payment of A$20 million.
Under the SPA, there is a further payment of A$10 million due to Aviva if a National Instrument 43-101 compliant indicated resource of 3 million ounces or more is declared over AMK's project areas.
The approval of the KCA satisfies the last remaining condition precedent to the SPA.
Aviva expects that completion of the sale of AMK will be achieved within one week. On completion of the sale of AMK, ABG is required to make the initial cash payment of A$20 million to Aviva.
Aviva Chief Executive Officer Lindsay Reed said: "Aviva is delighted that the final condition precedent to the sale of AMK to ABG has been satisfied. We will work closely with ABG to achieve completion of the transaction as soon as possible. Aviva is continuing to consider their strategic growth options and opportunities both inside but also outside of Botswana".
Aviva will inform shareholders as soon as completion of the transaction is achieved.
Aviva is a resource development company listed on the Australian Stock Exchange (ASX: AVA) and the Botswana Stock Exchange, with its head office in Perth. The company is well funded, and is developing a pipeline of energy and metal projects both in Africa and Australia.
Aviva's strategy is to identify and develop early resource opportunities which are well located to demand and infrastructure. The Aviva management team has strong resource and capital market expertise, with proven expertise in the generation, exploration, approval and development of resource projects.
In Africa, the company is exploring for gold and base metals, at its West Kenyan joint venture project with Lonmin Plc. Aviva also has an interest in two coal-based energy assets - the Mmamantswe project in Botswana, and the Coolimba Power and Coal project in WA.
For more information, please visit our website: www.avivacorp.com.au
Originally published in Mineweb.
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