StockMarketWire.com - Savannah Resources announced it increased its interest in Matilda Minerals (Matilda) to 100%, by way of the acquisition of a further 20% equity interest in the entity.

Matilda holds the prospecting rights in the 180km2 Jangamo heavy mineral sands tenement in Mozambique (which is part of the Mutamba Heavy Minerals Sands Project and subject to the company's previously announced consortium agreement with Rio Tinto).

This 20% interest was secured in consideration of AUD100,000 (£60,000) payable by issue of 1,194,074 ordinary shares of 1p in the company (ordinary shares) at an issue price of 5.056p (calculated by reference to 30 day volume weighted average as above) (transfer shares).

As part of this acquisition, Savannah agreed with the vendors of Matilda to cancel the deferred consideration terms detailed in the company's RNS on 9 September 2013, for consideration of AUD50,000 (£30,000) payable by issue of 597,037 ordinary shares at an issue price of 5.056p (being the company's 30 day volume weighted average price for the 30 dealing days prior to the date of approved issue).

Savannah's CEO David Archer said: "We're pleased to have reached agreement with the vendors of Matilda to eliminate the deferred consideration obligations from the 2013 acquisition and also to finalise the purchase of the 20% not already owned by Savannah.

"I am pleased to confirm that this transaction has been approved by the Mozambique Ministry of Mineral Resources, which has been very supportive of our activities in country."




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