Nkombwa Hills Rare Earth Project Update
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
10 September 2012
African Consolidated Resources plc ('ACR')
Nkombwa Hills Rare Earth Project Update
ACR, the AIM listed southern African focused resource development company, notes the announcement released by Galileo Resources Plc ('Galileo') which provides an update regarding the successful completion of due diligence of the Nkombwa Hills Rare Earth Project in Zambia, subject to the confirmation of tenure. This update follows the Heads of Agreement with Rare Earth International Limited, ACR's joint venture partner over the Nkombwa Hills Rare Earth Project, as announced on 25 July 2012.
Andrew Cranswick, Chief Executive Officer of ACR, said, "The Nkombwa Hills Rare Earth Project has demonstrated its high prospectivity following initial results from rare earth element ('REE') enriched outcrop samples of up to 23.6% total REE oxide over a strike length of at least 350m, which remains open at both ends. The completion of due diligence over the project, subject to the confirmation of tenure, is an important step in the onward development of the asset, and we are delighted that Galileo has reiterated its commitment to achieving this objective.
"ACR and the board of Galileo have been assured by the Zambian Mines Development Department that the Nkombwa Licence is the sole valid mining right over the entire area, and we look forward to official rectification in order for Galileo to begin exploration activities on the licence. Galileo, led by rare earth specialist Colin Bird, has demonstrated its expertise in fast tracking mineral projects in Zambia, and we are confident that this is the right team to unlock the value of the Nkombwa Hills project for all stakeholders."
Galileo Resources announcement:
Galileo Resources Plc
('Galileo' or the 'Company')
Update on Due Diligence on Galileo's Acquisition of Rare Earth International's Rare Earth Opportunities
Galileo Resources Plc, the AIM-quoted emerging African Rare Earth exploration company, is pleased to announce with reference to the Heads of Agreement ('HoA') (announced 25 July 2012) with Rare Earth International Limited ('REI') that it has completed the due diligence review on the three rare earth projects in Zambia, Mozambique and Spain to its satisfaction in all respects except for the confirmation of the tenure, over the Nkwomba Hills rare earth deposit in Zambia, held under Large Scale Prospecting Licence No. 12198-HQ-LPL (the 'Nkombwa Licence').
The licence administration centre (the 'Cadastre') of the Zambian Mines Development Department is currently not releasing tenure licence documents for due diligence or any other purpose as the Ministry of Mines and Mining Development (the 'Ministry') until recently had a moratorium in place on all licences held on record in order to clear various irregularities that have been "piling up for years".
The Galileo board has a recent written opinion from the Ministry stating inter alia that it is the Ministry of Mines Judgment that (inter alia) the Nkwomba Licence is the sole Valid Mining Right over the entire area covered by the Nkombwa Licence, including the Nkombwa Hills rare earth deposit.
The Company's board, having given due regard to the due diligence completed and the aforementioned official opinion on tenure, has conditionally approved the issue and allotment to REI of 5.25 million Galileo ordinary shares, subject to the Cadastre releasing the title documentation and confirmation that Nkombwa Licence is the sole valid Mining Right. A further announcement will be made as and when the shares are issued.
In view of the aforementioned delays, the parties to the HoA have agreed through an amendment agreement to the HoA, to extend the times, as appropriate, for title due diligence and other time-related clauses in the HoA.
The Company will update its shareholders on the outcome of the physical resolution of the Ministry and the moratorium.
For further information, please contact:
Colin Bird Tel +44 (0)20 7581 4477
Chairman & CEO
Andrew Sarosi/Robin ("Jock") Harmer Tel +44 (0) 1752 221937/+27 (0) 12 997 1058
Executive Director/Technical Director
Beaumont Cornish Limited, Tel +44 (0)20 7628 3396
Nominated Advisor and Broker
Roland Cornish/James Biddle
Shore Capital Stockbrokers Limited Tel +44 (0)20 7408 4090
Joint Broker
Jerry Keen/Toby Gibbs
Bishopsgate Communications Tel +44 (0)20 7562 3350
Nick Rome/ Anna Michniewicz/Ivana Petkova
This announcement has been reviewed by Mike Kellow BSc, a member of the Australian Institute of Geologists and Technical Director of ACR. Mr Kellow meets the definition of a "qualified person" as defined in the AIM Note for Mining, Oil and Gas Companies.
**ENDS**
For further information visit www.acrplc.com or please contact:
| Roy Tucker | African Consolidated Resources plc | +44 (0) 1622 816918 +44 (0) 7920 189012 |
| Andrew Cranswick | African Consolidated Resources plc | +44 (0) 7920 189010 |
| Andrew Godber | Panmure Gordon (UK) Limited | +44 (0) 20 7886 2966 |
| Callum Stewart | Panmure Gordon (UK) Limited | +44 (0) 20 7886 2960 |
| Adam James | Panmure Gordon (UK) Limited | +44 (0) 20 7886 2951 |
| Hannah Woodley | Panmure Gordon (UK) Limited | +44 (0) 20 7886 2904 |
| Susie Geliher | St Brides Media & Finance Limited | +44 (0) 20 7236 1177 |
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: African Consolidated Resources Plc via Thomson Reuters ONE
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