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Re: News Releases - Tuesday, December 16, 2008
Settlement of Savanna Litigation
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Perth, Australia -- 17 December 2008 -- Bannerman Resources Ltd (ASX:
BMN, TSX: BAN) ("Bannerman" or the "Company") advises that its
subsidiary Bannerman Mining Resources (Namibia) Pty Ltd ("Bannerman
Namibia") has entered into an agreement to settle the litigation
against Bannerman and others brought by Savanna Marble CC ("Savanna")
and certain associated parties (the "Savanna Parties").
Under the terms of the settlement agreement, Savanna has agreed to
discontinue the review application in Notice of Motion A338 of 2007 in
the High Court of Namibia. As previously announced to the market,
Savanna had sought a declaration that the grant by the Minister of
Mines and Energy of Namibia of the Company's Exclusive Prospective
Licence ("EPL") 3345, on which the Etango Project is situated, was
void.
This settlement removes a very real threat to the Company's timetable
for the development of the Etango Project and any possibility of losing
the licence.
Bannerman CEO Mr Len Jubber said that the Bannerman board of directors
was unanimously of the view that settlement of the Savanna litigation
represented a much better outcome for Bannerman than proceeding to
trial.
"While we were very confident in our legal position, we could not
ignore the reality that the delay in finalising the litigation was
going to significantly complicate our ability to advance our
development plans for the Etango Project and our other interests in
Namibia.
"Apart from the time, effort and expense associated with the litigation
we were also cognisant of the risk, no matter how small, of an adverse
outcome from the proceedings".
"The settlement of this litigation removes a significant potential
roadblock for us and will allow us to progress discussions with all
stakeholders -- including various arms of the Namibian government and
potential investors and partners -- free of the impediments that the
litigation created."
Details of settlement agreement
Under the terms of the settlement agreement, in consideration for the
termination of the proceedings, Savanna is entitled to receive up to
A$3.5 million cash and 9,500,000 fully paid ordinary shares in
Bannerman.
A$3 million cash will be paid to Savanna upon completion of the Deed
and a further A$0.5 million is contingent on the grant of the Mining
Licence.
To ensure that the interests of Savanna and the company are more
closely aligned, the shares to be issued to Savanna will be issued in
two tranches. The first tranche of 5,500,000 shares will be issued on
completion of the Deed with the balance of 4,000,000 shares (subject to
Bannerman shareholder approval) being issued on the grant of a Mining
Licence in relation to EPL 3345.
Bannerman will seek the approval of its shareholders to issue of the
second tranche of shares under the terms of the settlement agreement at
a General Meeting expected to be held in February 2009. If Bannerman
shareholder approval for the issue of the second tranche of shares is
not obtained by the date on which the Mining Licence is granted, then
within 15 business days of the grant of the Mining Licence, Bannerman
must pay to Savanna an equivalent value in cash based on the volume
weighted average Bannerman share price over the 10 trading days prior
to, and the 10 trading days immediately after, the date on which the
Mining Licence is issued.
Under the terms of the settlement agreement, the Savanna Parties
undertake to withdraw applications for the issue and amendment of
Exclusive Prospecting Licences overlapping EPL 3345 and to refrain from
bringing review actions in the future that would impact Bannerman's
title. Savanna will have the right to continue with its existing
dimension stone business and the parties will co-operate with respect
to applications to the Mines Department in Namibia to ensure that this
outcome is achieved.
Len Jubber
Chief Executive Officer
For further information please contact:
Australia:
Len Jubber
Chief Executive Officer
Bannerman Resources Limited
Tel: (08) 9381 1436
E:info@bannermanresources.com
North America:
Ann Gibbs
Investor Relations Manager
Bannerman Resources limited
Tel: +1 416-388-7247
E: ann@bannermanresources.com
Website: www.bannermanresources.com
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Copyright (c) 2008 BANNERMAN RESOURCES LIMITED (BAN) All rights
reserved. For more information visit our website at
http://www.bannermanresources.com/ or send
mailto:questions@bannermanresources.com
Message sent on Tue Dec 16, 2008 at 3:21:59 PM Pacific Time
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