London, England — MININGREVIEW.COM — 28 February, 2008 – Cluff Gold Plc – a British-based company focused on the identification and acquisition of mining deposits in West Africa – has reached agreement on acquiring an additional 40% interest in the Baomahun gold project in Sierra Leone. This acquisition will give the company full 100% ownership of the project.
A Cluff Gold announcement here today reveals that the company has entered into a conditional agreement with Dumarchel Nominee Limited and Mr Ronald Winston to acquire from Mr Winston the 40 per cent interest in the Baomahun project which it does not already own. “The consideration for the acquisition will be US$21.8 million (Over R160 million), which is to be satisfied by the issue of 12.4 million ordinary shares of 1p each,” the announcement adds.
Acquisition will be effected by the company acquiring from Dumarchel Nominee Limited, as nominee for Mr Winston, the entire issued share capital of Winston Mining Limited – a company incorporated in the British Virgin Islands, the sole assets of which are a 40 per cent interest in the Baomahun and Victoria exploration licences, and in Baomahun Gold Limited, which together comprise the Baomahun project.
The announcement points out that acquisition is conditional upon, inter alia, award by the Sierra Leone government of the mining lease which has been applied for in respect of the Baomahun project, as announced by the company on 31 January 2008.
Subject to completion of the acquisition, application will be made to the London Stock Exchange for the consideration shares to be admitted to trading on the AIM.
“This represents a major advance for the company, and is the fruition of more than three years of constructive association with Winston Mining,” says Cluff Gold chairman and CEO Algy Cluff
“We regard this as our flagship project and our plan is to continue drilling until the end of this year, followed by a full feasibility study in 2009.”