Shabait.com (Asmara)
26 October 2007
press release
Asmara — The Eritrean National Mining Corporation, ENAMCO, today concluded a shareholder agreement for the Bisha Mining Share Company with Nevsun Resources. Under the terms of the agreement ENAMCO will purchase a 30% contributing interest in the Bisha project, which with the Government of Eritrea's 10% free carried interest will bring ENAMCO's total ownership to 40%. ENAMCO will make a provisional payment for its 30% paid participation shares within 90 days and the full fair value for its share of the project will be determined by an independent valuator on commencement of production.
A feasibility study and a Social and Environmental Impact Assessment for the Bisha project was presented to the Government of Eritrea in late 2006. The conclusion of the shareholder agreement between ENAMCO and Nevsun will allow the Bisha Mining Share Company to complete its application for a mining license for the Bisha project and to progress with the financing of the mine's development.
The Bisha Mine represents an important step in Eritrea's development of a significant mining sector, harnessing the nation's natural resources for the benefit of the whole economy. The agreement reached between Nevsun and ENAMCO provides a model for the development of Eritrea's rich mineral provenance. The conclusion of a mining license for the Bisha Mining Share Company is anticipated to further invigorate exploration efforts in Eritrea by local and international mining enterprises.
The shareholder agreement was signed by Berhane Habtemariam, the General Manager of ENAMCO, and Cliff Davis, Director of Nevsun.
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