/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
U.S. NEWS AGENCIES/
TORONTO, June 11 /CNW/ - Africo Resources Ltd. (TSX:ARL) announces that
it has received a non-binding, conditional proposal from Creat Group Co., Ltd.
("Creat"), an investment enterprise group based in Beijing, China, which
focuses on industrial, real estate, mineral resource and financial
investments. The proposal is for Creat to subscribe for 35 million units of
Africo at a price of CAD $3.00, each unit consisting of one common share of
Africo and one-half of one warrant, each whole warrant entitling the holder to
purchase an additional common share at a price of CAD $4.00 for a period of
24 months from the date of issuance. In addition, Creat proposed that it would
be responsible for arranging the balance of the capital required to develop
Africo's Kalukundi property and would assist Africo in resolving its
outstanding legal proceedings in the DRC regarding the ownership of Swanmines
Sprl. Creat stated that the completion of an investment would be subject to
due diligence by Creat, which would take approximately four months to
Africo's management is of the view that it cannot consider the proposal
from Creat at this time as the proposal is in a very preliminary form and is
conditional upon, among other things, Creat performing due diligence to its
satisfaction. There is no assurance that any transaction contemplated by the
proposal could be finalized to Africo's satisfaction or that the current legal
dispute between Africo and Akam Mining sprl would be resolved.
Africo maintains and re-confirms its recommendation to its shareholders
to approve the transactions contemplated with Camrose at Africo's annual and
special meeting scheduled for June 12, 2008, the details of which are included
in Africo's information circular dated May 14, 2008 and filed on
www.sedar.com. In making this recommendation, Africo's management is of the
view that the injection in the short term of $100 million equity capital by
Camrose at $2.50 per unit as well as the potential project synergies provided
through the adjacent Mashitu properties and the settlement of the Akam legal
dispute, when taken together, are in the best interests of Africo and its
shareholders. As outlined in the circular, the transactions with Camrose will
bring a resolution to the litigation surrounding Swanmines. If the transaction
with Camrose were not to proceed, there can be no assurance whatsoever as to
the outcome of such litigation.
Note for editors:
Africo Resources Ltd is a Canadian mineral company, committed to
developing, acquiring and exploring for base metal and gold assets in Africa.
The company's main project is Kalukundi, a development stage copper-cobalt
deposit located in the Katangan Copperbelt in the Democratic Republic of Congo
(DRC). The development team has an operational base in the DRC, with the
company corporate offices located in Vancouver, Canada. The company listed on
the Toronto Stock Exchange in December 2006.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that Africo
expects to occur, are forward looking statements.
Forward looking statements are statements that are not historical facts
and are generally, but not always, identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Although Africo believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may
differ materially from those in forward looking statements. Factors that could
cause the actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration success,
continued availability of capital and financing and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements.
Forward looking statements are based on the beliefs, estimates and opinions of
Africo's management on the date the statements are made. Other than as
required by law, Africo undertakes no obligation to update these
forward-looking statements in the event that management's beliefs, estimates
or opinions, or other factors, should change.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES,
AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD
IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
For further information:
For further information: Dr Tony Harwood, President and CEO, on tel:
+27(11) 463-0081; Michael O'Brien, CFO, on tel: (604) 646-3225; Bill
Cavalluzzo (Investor Relations) on tel: (416) 265-8049; Charmane Russell
(Investor Relations) on tel +27(11) 880-3924