Nyota completes sale of 75% of Nyota Minerals (Ethiopia)

Nyota Minerals Limited (AIM:NYO), the gold exploration and development company in East Africa, announces that it has completed the sale of 75% of the issued share capital of Nyota Minerals (Ethiopia) Limited, the company’s subsidiary that owns 100% of the Tulu Kapi Gold Project in Ethiopia and the proximal exploration licences.

The 75% stake in the Subsidiary has been sold to KEFI Minerals plc, an AIM-quoted gold and copper exploration and development company with projects in the Kingdom of Saudi Arabia. Nyota and KEFI Minerals are now joint venture partners in the Subsidiary.

Nyota’s remaining 25% beneficial interest in the Subsidiary is to remain undiluted by further investment made by KEFI Minerals until a revised JORC-compliant resource estimate for Tulu Kapi has been approved. KEFI Minerals currently anticipates publishing these revised estimates in Q1 2014.

The Group has received £1 million in cash and 107,081,158 ordinary shares in the capital of KEFI Minerals (the ‘Consideration Shares’) as the consideration for the Sale. The Consideration Shares will represent approximately 12.5% of the enlarged ordinary share capital of KEFI Minerals, after such shares are admitted to trading on AIM. Nyota had drawn down £285,000 of the £360,000 secured loan facility provided by KEFI Minerals to Nyota Minerals (Ethiopia) Limited and the number of Consideration Shares received was adjusted accordingly, in line with the terms of the Sale, to repay this loan.

As previously reported, Nyota will look to raise funding in 2014 in order to fund the Company’s share of the on-going development costs at Tulu Kapi and to carry out a focussed exploration programme to advance the Company’s Northern Block exploration properties.

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