Announcement Below.Previous announcement also said they has an...

Announcement Below.

Previous announcement also said they has an option on another iron ore project in Libera, maybe they are doing a similar deal there???

Continental Capital is pleased to announce that the Company has entered into a binding heads of agreement with South African empowerment group Mbewu Resources in respect of its Vanmag Project which Continental has a 50% interest in.
Under the terms of the agreement, Mbewu will acquire a 60% interest in the project through Continental and the other stakeholders and inject US$10m into the project to proceed to bankable feasibility. From Continental’s perspective it will retain a 40% interest in the Vanmag Project (carried for the next US$10m invested in project exploration and development) and receive approximately US$5m in cash.
Mbewu has a strong association with South Africa’s Delta Mining Consolidated who recently was announced as the successful bidder to develop (US$1.6 bn) the Western Cluster Iron Ore Deposits in Liberia. Delta Mining will assist Mbewu with Project feasibility. Mbewu’s aim is to establish an iron ore mine in addition to developing a steel beneficiation plant.
Key terms of the Heads of Agreement include:
a) 90 days to complete the transaction which includes obtaining all necessary approvals, compliance with BEE legislation and completion of due diligence;
b) Mbewu having first right to negotiate an off take agreement on arms length commercial terms with respect to ore produced from the Vanmag Project; and
c) Continental having first right to participate (pro rata) in any steel or iron ore processing plant acquisition / development that Mbewu (or its associates) introduces to the Vanmag Project.
Continental looks forward to updating shareholders as the transaction proceeds to completion. The current drilling programme on Vanmag is proceeding (8 holes completed) with assay results pending.
Yours faithfully
PETER LANDAU
Executive Chairman