Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Sono Resources Inc. (OTCQB- SRCI) entered into a formal Share Purchase Agreement (the “Agreement”) on April 1, 2011 with Tignish (PTY) Ltd., a Botswana company (the “Vendor”), to purchase 95 percent of the issued and outstanding shares (the “Shares”) of Bonnyridge (PTY) Ltd., also a Botswana company (“Bonnyridge”), which is the legal and beneficial owner of three mineral license blocks located in Northwestern Botswana, Africa (the “Property”).
In accordance with the terms of the Agreement, and in order to purchase the Shares, the Company was required to provide the Vendor with: (i) an initial cash payment of USD$200,000 within three business days of the execution of the Agreement which has been paid, (ii) a further cash payment of USD$100,000 on or before closing, which was paid on July 29, 2011 and (iii) to issue from treasury, 6,500,000 restricted common shares of the Company.
The Company announced on Tuesday to shareholders that the final $100,000 cash payment has been made and that Sono will now issue the Vendors 6,500,000 common shares from treasury thus finalizing its purchase obligations for the year.
In order to maintain its property interests, Bonnyridge continues to be obligated to provide the Vendor with USD$900,000 payable in three installments of USD$300,000 per year over a three-year period. The two cash payments made by the Company to the Vendor of USD$200,000 and USD$100,000 respectively noted above, will be applied against the USD$300,000 installment due for the first year. In addition, the Company must carry out an exploration program on the 2,965.6 square km of mineral rights with an expenditure commitment over the three-year period of USD $1,750,000.
The area where the licenses are located has been widely characterized as an extension of the Kalahari Copper Belt, which is believed to extend from Zambia through Botswana and into Namibia. The belt is home to many producing copper mines and many more recent and successful exploration activities.
About Sono Resources Inc.
Sono Resources Inc. is a mineral exploration company seeking to acquire, explore and develop highly prospective metal projects in Africa. Its core project, located in Botswana, covers 2965.6 square kilometers and is part of the Kalahari Copper Belt, recognized as one of the largest producing copper belts in the world.
