I have not seen this announcement before so just wanted to put...

I have not seen this announcement before so just wanted to put it up!
30 October 2007
Vanmag Iron Ore Project, South Africa – Binding Heads of Agreement
During the quarter Continental Capital 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, upon completion, 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)