12/11/2008 - 11:23

CityView chairman outlines vision

12/11/2008 - 11:23

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Chairman of Perth-based CityView Corporation, Manuel Africano has outlined the company's plans for growth in an address to shareholders today including the acquisition of mining organisations, Fortitude Minerals and Canzar Resources.

CityView chairman outlines vision

Chairman of Perth-based CityView Corporation, Manuel Africano has outlined the company's plans for growth in an address to shareholders today including the complete acquisition of mining organisations, Fortitude Minerals and Canzar Resources.

Mr Africano said he aims to acquire 100 per cent of Fortitude and Canzar with vendor restricted shares based on ownership percentage and mathematically calculated ratios.

CityView currently holds a 46 per cent stake in Fortitude, described as a key company which requires substantial additional capital to fulfil the work commitments.

"All of the mining interests including the Longonjo diamond alluvial and kimberlite licences reside in Fortitude," he said.

"Not to act on this will jeopardise these assets. The opportunity to take 100 per cent of Fortitude under CityView exists only if CityView is able to meet immediate obligations."

Meanwhile, Canzar holds the diamond alluvial and kimberlite rights to the Luachisse and Nhefo projects.

"Under the proposed agreements, CityView will hold 20% of Canzar in addition to its existing 10% net profits interests," said Mr Africano.

Mr Africano also said the company plans to complete the rights issue to raise more than $6 million through an entitlements issue, which will fund its existing operations in West Africa.

CityView intends to make a non-renounceable entitlements issue of 1 new ordinary share for every 1 ordinary share held at an issue price of 1.25 cents per ordinary share to raise up to approximately $6.2 million.

"Although the bitter pill for recovery is a low priced rights issue, the rewards will be that we keep and gain proper control of the prime assets, which in turn allows us to reinforce the base with hard assets and become a producer," Mr Africano said.

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