Microsoft Word - 2014 11 24 Acquisition of Shares
25 November 2014
Kitgum-Pader Project, Uganda
Sipa signs binding term sheet to acquire 100% interest in the project
Sipa Resources Limited (Sipa) is pleased to announce that it has signed a binding term sheet with Geocrust Pty Ltd (Geocrust) to become the 100% holder of the Kitgum-Pader base and precious metals project in Uganda, East Africa.
Under the term sheet, Geocrust agrees to sell its shares in SIGE East Africa Pty Ltd (the company which currently holds the Kitgum-Pader project) to Sipa East Africa Pty Ltd, a wholly owned subsidiary of Sipa and holder of the remaining shares in SIGE East Africa, in exchange for ordinary fully paid Sipa shares to the value of A$453,242. The number of Sipa shares to be issued is to be determined by reference to the volume weighted average price of Sipa shares in the 30 trading days immediately prior to this announcement. Based on volume weighted average price, 12,803,447 will be issued at closure.
The A$453,242 figure reflects the value of the Geocrust shares after adjustments for the significant cash contributions made by Sipa to fund the ongoing exploration of the project.
Geocrust has agreed not to dispose of any Sipa shares issued pursuant to the proposed transaction for a period of 12 months from the date they are issued.
The transactions contemplated by the term sheet are subject to due diligence and the parties entering into formal documents for the sale and purchase of the Geocrust interest. Sipa will keep shareholders informed.
Background
The Kitgum-Pader Basemetals & Gold Project comprises 15 exploration licences and one application, covering 6,490 square kilometres in central northern Uganda, East Africa. The Project came about following the acquisition in 2011 of relatively new airborne magnetic/radiometric data sets over East Africa, and the subsequent geological/metallogenic interpretation of the data sets by Sipa and Geocrust Pty Ltd (Geocrust). Geocrust is a private company established by the late Dr Nick Archibald.
During field reconnaissance in December 2011, Sipa and Geocrust recognised rocks strikingly similar to the host 'Mine Series' sequence at the giant Broken Hill Lead-Zinc- Silver Deposit in NSW, Australia, to the northwest of Kitgum, Uganda. It was these observations that led to formation of an incorporated joint venture, SiGe East Africa Pty Ltd (SiGe), which is 80% owned by Sipa and 20% owned by Geocrust Pty Ltd, and SiGe's wholly owned subsidiary, Sipa Exploration Uganda Limited (SEUL), and the application and subsequent granting of mineral tenements.
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: [email protected]
Fieldwork commenced in early 2013, and by mid October 2014, some 40,000 soil samples had been collected, along with geological mapping by Nick Archibald. The results of the field work and subsequent drilling of soil targets have led to the discovery of 2 potentially economic mineral systems.
· Broken Hill-style Lead-Zinc-Silver, at Pamwa; and
· Intrusive hosted Nickel-Copper sulphide mineralisation at Akelikongo
The soil sampling has also highlighted a number of other Zinc and Nickel targets which require drilling. Work is currently underway to advance both the Pamwa Zn and Akelikongo Ni targets using ground EM and IP which will then be followed up using Diamond drilling.
For more information: Lynda Daley Managing Director
Sipa Resources Limited
+61 (0) 8 9481 6259 [email protected]
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: [email protected]