VANCOUVER, June 12 /CNW/ - Mano River Resources Inc. ("Mano" or "the
Company"), the TSX-V and AIM listed exploration and development company
focused on natural resources in West Africa, today announces an update on the
progress of its diamond subsidiary Stellar Diamonds Limited ("Stellar").
- Stellar has acquired all the diamond assets from Mano
- Diamond assets valued by the board of Stellar at GBP23.9 million,
supported by a private report by MPH Consulting Limited
- Completed a private placing raising of GBP800,000
- Additional Pre-IPO financing planned, raising up to GBP4.5 million,
with a proposed IPO of Stellar planned in Q4 2007
- Appointment of Rowan Carr as VP Exploration
Acquisition of diamond assets
Mano River has completed an internal corporate re-organisation of its
diamond assets and Stellar has acquired a 100% interest in Mano's diamond
assets in Liberia, Sierra Leone and Guinea. Stellar has also acquired from
SearchGold its 50% interest in the Guinean joint venture company, Guinean
Diamond Corporation Ltd., which holds the Bouro/Mandala alluvial project. In
consideration for these acquisitions, Stellar has issued 22 million shares
(19.3 million shares to Mano and 2.7 million shares to SearchGold and a local
minority shareholder, respectively) at a price of GBP0.87. The directors of
Stellar valued the diamond assets at GBP23.9 million, which was supported by a
private independent report by MPH Consulting Limited completed on 1st March
Stellar has completed a private placing raising of GBP800,000. The funds
will be used towards maintaining Stellar's equity interests in its various
on-going JV projects in 2007.
As a result of these acquisitions and the private placing, Mano holds an
approximate 83% interest in Stellar. A further Pre-IPO financing is currently
being planned, raising up to GBP4.5 million, the proceeds of which will be
used to advance Stellar's current exploration and development programmes.
Appointment of VP Exploration
Mano is also pleased to announce that Rowan Carr has joined Stellar as
Vice President of Exploration. Rowan brings with him over 20 years of African
diamond exploration and management experience gained with the De Beers group
of companies, having managed diamond projects in Botswana, South Africa,
Angola, Guinea, Central African Republic and the Democratic Republic of Congo.
In addition Rowan was also the technical manager of the De Beers' largest
mineral processing laboratory in Kimberley.
Stellars's CEO, and director of Mano, Karl Smithson, commented:
"Through this restructuring and the proposed listing of Stellar, we are
confident that significant value will be unlocked for Mano shareholders. We
hope to further increase the value of Stellar in the run up to the planned IPO
through progressing the current advanced kimberlite projects in Sierra Leone
and Liberia and through selective acquisitions and potential Joint Ventures,
including one in the DRC.
On behalf of the board, I welcome Rowan Carr, who brings significant
diamond exploration experience to Stellar's management team."
Notes to Editors:
About Stellar Diamonds Limited
Stellar Diamonds will be an integrated diamond miner and explorer with a
focus on West and Central Africa. The Company's portfolio of diamond
properties and joint ventures in West Africa is summarised as follows:
- A 49% interest in a JV with Petra Diamonds on the Lion Kimberlite
Dykes project in the Kono diamond fields of Sierra Leone, with
underground diamond production planned to commence in early 2008. A
75-tonne per hour processing plant is already built and exploration
shaft sinking is being conducted on numerous diamond bearing
- A 50% interest in a JV with Trans Hex Group in the Weasua cluster of
diamondiferous kimberlite pipes in Liberia, where bulk sampling to
determine diamond grades and value is currently underway.
- A 100% interest in the Mandala alluvial and Bouro kimberlite dyke
project in Guinea, where a non-43-101 indicated alluvial diamond
resource of 550,000 carats has been established and where high grade
kimberlite dykes are present.
- A 15,000km2 reconnaissance licence in western Liberia where diamond
bearing kimberlites and numerous high interest mineral indicator
anomalies have been discovered.
- A JV with BHP Billiton, who are earning into an initial 51% interest
in the south-eastern Sierra Leone tenements. The joint venture has
located a high-grade diamond bearing extension of the high grade Tongo
- Two licences in south east Sierra Leone where kimberlite has been
discovered and indicator mineral anomalies require further follow up
- A JV with African Aura in Liberia where exploration is ongoing to earn
into a 78% interest in the diamond rights of the 400km2 north Bea
- A 100% held interest in the diamond rights of the 1,000km2 Bea MDA
licence in Liberia where indicator mineral anomalies have been
generated and require further follow up work.
- An agreement with De Beers to access their regional Guinea database,
where an independent consultant has reviewed the data and target
selection is now ongoing.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: on Mano River Resources and its exploration
programme, you are invited to visit the Company's website at www.manoriver.com
or contact one of the following: Mano River Resources Inc.: Tom Elder, Luis da
Silva, Tel +44 (0) 1235 810 740, email@example.com; Stellar Diamonds Ltd: N
Karl Smithson, firstname.lastname@example.org, Tel +27 82 802 8802; GMP Securities Europe
LLP: James Hannon, an Appointed Representative of Panmure Gordon (UK) Limited,
Tel +44 (0) 20 7459 3606, email@example.com; Pelham PR Ltd: Charles
Vivian, Tel +44 (0) 20 7743 6670, firstname.lastname@example.org; James
Macfarlane, Tel +44 (0) 20 7743 6375, email@example.com