West Africa Mining Holding AG
SN Minerals Ltd. in negotiations AngloGoldAshanti
West Africa Mining Holding AG / Miscellaneous 02.06.2010 08:39 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- SN Mineral Mining Ltd. holds two gold exploration licenses in the Republic of Senegal, in the licensed territories of Velingara (604 square kilometre licensed territory) and Madina Foulbe (420 square kilometre licensed territory). West Africa Mining Holding AG, Zug, which is listed on the Frankfurt stock exchange (ISIN CH0045659973) has a 24.90% holding in SN Minerals Ltd. At the ordinary general meeting of West Africa Mining Holding AG, which took place on 28th May 2010 in Zürich, Board of Directors' member Peter Sommer provided information about the latest proceedings in the further development of this stake. Since April, SN Mineral Mining Ltd. has been in talks with the West African subsidiary of AngloGoldAshanti, the third-largest gold producer in the world. The two companies had already signed a confidentiality declaration back in April and will shortly hold further talks with the aim of the AngloGoldAshanti Group becoming involved in the exploration project of SN Mineral Mining Ltd. These talks were the result of a presentation, which SN Mineral Mining Ltd. gave at the SIM Senegal mining conference and exhibition in April. In the presentation, promising initial investigation results were presented by head geologist of SN Mineral Mining Ltd., Dr. Madani Diallo. At one location in the licensed territory of Velingara, a gold content of 2.9 grams per tonne was determined, which is a world-class deposit. In further investigations, the presence of a larger deposit of this kind should now be confirmed. A projection of this result to the rest of the licensed territory is not possible without further investigations. For the next stages of the exploration, there is now a promising concrete starting point, which completely confirms the strategy of expanding into this undeveloped territory. Dr. Madani Diallo, who once worked as the country manager for AngloGoldAshanti in Mali and was responsible for the exploration and development of a series of major gold deposits in Africa, explained these investigation results as part of a detailed presentation to the shareholders who had travelled to the general meeting in Zürich. The presentation is soon available for all shareholders to download as a PDF document at the Homepage of the company. Originally, SN Mineral Mining Ltd. planned an initial public offering and only intended to include a major partner at a later point in time. In addition, the interest of a major corporation in such an early stage of exploration is rather unusual. However, the approach of AngloGoldAshanti is understandable in that the corporation has identified the region of West Africa as the new investment focus and there is only a very limited number of gold licenses available in the particularly stable Republic of Senegal. Investment in SN Mineral Mining Ltd. is one of the few options still left to participate in the gold exploration projects in the Republic of Senegal. SN Mineral Mining Ltd. and its 24.90% shareholder West Africa Mining Holding AG view the current talks as an opportunity that it is essential to seize. However, at the same time, preparations for the first stock exchange listing for SN Mineral Mining Ltd., which is planned for 30th June 2010, are being continued, at least until there is a written intention to invest at hand. SN Mineral Mining Ltd. will continue to develop its 'Velingara' gold exploration license, irrespective of the outcome of the talks with AngloGoldAshanti, either under the company's own steam or with the new partner, if the conditions presented are favourable. In addition, these developments have made it clear that SN Mineral Mining Ltd. is holding a valuable asset with this license and the strategic approach of West Africa Mining Holding AG to position itself in the under-explored territories in West Africa is correct. In addition, the general meeting of West Africa Mining Holding AG approved all the agenda items which were submitted for approval with an acceptance of 99.66%. The nominations for the elections in the Board of Directors have been changed. Despite original intentions, Mr. Luis Figo, who signed a letter of intent to take-over 11% of West Africa Mining Holding AG in March 2010, will not be available to the Board of Directors due to his new obligations at Inter Milan, which resulted shortly before the general meeting and could be largely gathered from the press. The election of Dr. Madani Diallo into the Board of Directors also had to be postponed due to the ongoing talks with AngloGoldAshanti. Dr. Madani Diallo is a member of the Board of Directors of AngloGoldAshanti Mali, which is why election into the Board of Directors for West Africa Mining Holding AG would result in a conflict of interests for the ongoing talks. In this context, AngloGoldAshanti gave West Africa Mining Holding AG approval to inform the shareholders about the ongoing talks. It is planned to accept Dr. Madani Diallo into the Board of Directors of West Africa Mining Holding AG at a later point in time. Until then, newly elected Mr. Swen Lorenz will take over the role of sole director on the board, for the time being. In line with the earlier notification, Mr. Peter Sommer retired from the Board of Directors on conclusion of the general meeting in order to concentrate on his operative activities in the subsidiary and holding companies. He remains closely connected with West Africa Mining Holding AG, among other things, through First Invest Holding AG, which is managed by him and continues to hold a majority share in West Africa Mining Holding AG. As Mr. Swen Lorenz informed the general meeting, he sees three important areas for his function: - Development and expansion of the corporate governance structures of West Africa Mining AG in order to prepare the company for further, possibly greater measures in the capital market. - Support of the management of subsidiary and holding companies in the development and implementation of strategic plans and capital market measures. - Improvement of the transparency of the corporate group, especially with the aim of making the shares of West Africa Mining Holding AG easier to value and, consequently, more interesting to investors. The general meeting, together with a subsequent social drink, was taken as an opportunity by the attending shareholders and guests to personally get to know the representatives and consultants of the company and to form a picture of the progress of the company. A video recording of the lecture by Dr. Madani Diallo can soon be viewed at the Homepage by the company. Corporate Profile: West Africa Mining Holding AG About West Africa Mining Holding AG As an investment company, West Africa Mining Holding AG focuses exclusively on promising exploration, mining, natural oil and gas production companies. The business model of West Africa Mining Holding AG comprises the financing and development of young exploration companies with an above-average potential to find and produce natural resources of all kinds. The company aims at a duration of two to five years as the investment horizon. For more information, contact: West Africa Mining Holding AG Untermüli 6 CH-6300 Zug Email info@westafrica-mining.com Internet http://www.westafrica-mining.com Telephone +41 (44) 586 0 111 02.06.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------
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