West Perth-based Anvil Mining Ltd will take an 18 per cent stake in Perth-based Sub-Sahara Resources NL through a $7.2 million placement.
West Perth-based Anvil Mining Ltd will take an 18 per cent stake in Perth-based Sub-Sahara Resources NL through a $7.2 million placement.
According to a Sub-Sahara announcement, Anvil will purchase 60 million shares at $4.8 million immediately, and a further 30 millionshares at $2.4 million, subject to shareholder approval. Sub-Sahara will also grant 25 million options exercisable at 15 cents within 2 years .to Anvil, subject to shareholder approval,
Anvil vice president for business development Mike O'Sullivan has been invited to join the Board of Sub-Sahara.
The company said in an announcement it considered the placement a strong endorsement of the company, its projects and the exploration potential in Eritrea and Tanzania.
The full text of a company announcement is pasted below
Sub-Sahara Resources ("the Company") (ASX: SBS) is pleased to announce that Anvil Mining Limited (TSX: AVM) will undertake a strategic investment in the Company by way of a placement of A$7.2 million (90 million shares at A$0.08). This investment will give Anvil an 18% stake in Sub-Sahara Resources.
The placement will be completed in two tranches: 60m shares (A$4.8m) immediately and a further 30m shares ($2.4m) subject to shareholder approval. Sub-Sahara will also grant to Anvil, subject to shareholder approval, 25 million options exercisable at A$0.15 within 2 years from the date of issue.
Sub-Sahara's Board considers this placement a strong endorsement of the company, its projects and the exploration potential in Eritrea and Tanzania.
The Board of Sub-Sahara has invited Anvil's Vice President for Business Development, Mr Mike O'Sullivan to join the Board. Mr O'Sullivan has significant experience in Africa specifically in respect to the establishment and development of significant mining operations in Africa and will expand the range and depth of experience at Board level.
Sub-Sahara's Chief Executive Officer Mike Griffiths said, "The placement to Anvil represents a watershed event for Sub-Sahara. We are very pleased to welcome Anvil onto our register as a major shareholder. Anvil is a highly respected, successful African copper and base metals miner with a market capitalization in excess of A$1 billion."
"This investment signals a level of confidence by Anvil in our programs and, in particular, the Zara gold project in Eritrea. Zara continues to impress and is shaping up to be a very robust project that has to-date returned consistently high grade gold results.
Both Anvil and Sub Sahara view Eritrea as a country with significant untapped mineral endowment. We are eager to continue our exploration there and the investment by Anvil will contribute to the funding of further drilling."
The Zara gold project in Eritrea covers an area of 196 square km and is situated in northern Eritrea, East Africa, approximately 160km northwest of the capital city, Asmara. There are a number of high grade gold prospects within the project, with the Koka Prospect being the most advanced. Diamond drilling at the Koka has returned a number of high-grade gold intercepts.