TIDMAFCR
African Consolidated Resources Plc / Index: AIM / Epic: AFCR / Sector: Mining
18 February 2010
African Consolidated Resources Plc ('ACR' or 'the Company')
Marange Update
African Consolidated Resources Plc, the AIM listed resource development company
focussed in Zimbabwe, is pleased to provide an update on ACR's right to mine the
eastern Marange diamond fields ('the Marange Claims Area').
As previously announced, the Company was successful in a High Court Judgement
handed down on 25 September 2009 ('the 25 September Judgement') which upheld
ACR's title to the Marange Claims Area. This judgement is under appeal to the
Zimbabwe Supreme Court ('the Substantive Appeal') which the Company understands
is not likely to be heard for some time.
One of the orders ('the Paragraph 7 Order') in the 25 September Judgement was to
the effect that the 25 September Judgement should have immediate effect even
pending any appeal to the Supreme Court. There was a separate application to
the Supreme Court by the Government companies affected, appealing for the review
of the provisions of the High Court order including the Paragraph 7 Order
dealing with immediate execution, and a Judgement was handed down in respect of
this by the Supreme Court on 16 February 2010 ('the 16 February Judgement'). In
the 16 February Judgement the Paragraph 7 Order was overturned. In its place
the 16 February Judgement:
1. Confirms an interim Order of the Supreme Court of 25 January 2010 to the
effect that all diamonds acquired from the Marange Claims Area be
surrendered to the Reserve Bank of Zimbabwe ('RBZ') for safekeeping until
finalisation of the Substantive Appeal.
2. Criticises those who have removed diamonds produced at Marange and delivered
to RBZ pursuant to the 25 January Order as unlawful and in contempt of
Court.
3. On the balance of convenience allows the Government parastatal Zimbabwe
Mining Development Corporation to remain on site pending determination of
the Substantive Appeal, but orders that it cease all mining activities until
such determination.
Recent press comment concerning what was described as a "decision" to cancel the
licence of ACR arises from a separate action by the Government not formally
connected with the ongoing litigation. Notices have been issued pursuant to
Section 50 Mines and Minerals Act (the Section 50 Notices) of an intention to
cancel the Company's rights over the Marange Claims Area with effect from 10
March 2010 on the grounds that, when the claims were pegged in 2006, they were
pegged in an area that was 'reserved against prospecting' ('a Reserved Area').
New purported evidence ('the Purported Evidence') has been produced to
demonstrate that the Marange Claims Area had been a Reserved Area since 2004,
although the existence of such a Reserved Area was not alleged for approximately
three years, despite intensely contested litigation leading up to the 25
September Judgement; was not mentioned in a legal opinion given to Government in
2006 by the Attorney General; and was clearly not known or appreciated by any
Ministry of Mines officials at any relevant time prior to December 2009. The
Section 50 Notices are also premised on the fact that the ACR claims are
currently valid despite the fact that all of the Government's pleadings in the
Substantive Appeal assert the contrary.
The Company is of the opinion from all the surrounding evidence that there is an
inescapable inference that the Marange Claims Area was not in a Reserved Area
when pegged in 2006. The Company has also been advised that even if the
Purported Evidence can be shown to be genuine, the formalities required to
effect a Reserved Area under the Mines and Minerals Act have not been complied
with and accordingly the purported reservation is not valid.
The Company will continue to take all steps it can to protect its rights and to
regain possession of the Marange Claims Area.
As before, the Company remains firmly resolved to work with all elements of
Government to achieve an outcome that shows respect for the law, respect for the
courts and security for the substantial commitments made by international
investors. The Company continues to endeavour to engage all offices of
Government to reach a joint venture arrangement that will best serve the
interests of Zimbabwe and its diamond sector.
African Consolidated Resources CEO Andrew Cranswick said, "We welcome the new
Supreme Court injunction, its actions and criticism of the parties who have
unlawfully removed diamonds produced on our Marange licence area. We remain
firmly resolved to work these strategic national assets with the Zimbabwe
Government for the benefit of all Zimbabweans and will keep shareholders updated
on developments.
"We also remain focussed on advancing our broad portfolio of resource assets
across the country, in particular increasing the Resource base at the Giant and
Pickstone gold mines, which already have a cumulative JORC resource of over
800,000 oz Au, advancing a further four projects up to a maiden JORC Resource
status by the end of the year, advancing our Chishanya rock phosphate deposit
and bringing the Peerless Sulphide dumps towards production to provide
additional revenue."
For further information visit www.acrplc.com <http://www.acrplc.com> or please
contact:
Andrew Cranswick African Consolidated +44 7920 189010
Resources plc
Roy Tucker African Consolidated +44 1622 816918
Resources plc +44 7920 189012
Richard Greenfield Ambrian Partners Limited +44 20 7634 4700
Richard Brown Ambrian Partners Limited +44 20 7634 4700
Hugo de Salis St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Susie Callear St Brides Media & Finance Ltd +44 (0) 20 7236 1177
[HUG£1386190]
(END) Dow Jones Newswires
February 18, 2010 11:00 ET (16:00 GMT)