[2008-09-23]  Aviva Poised To Acquire 90% In Mmamantswe
Integrated energy developer Aviva Corporation (ASX, BSE) has announced the completion of two important milestones in the development of its Mmamantswe project.

In a BSE-posted statement on Friday, Aviva advised Mawana Minerals (Mawana) that it had achieved the $US0.5 million (P3.42 million) expenditure required by 30 September 2008 as part of farm-in arrangements and elected to make the final vendor payment to secure the right to move to a 90-percent interest in the project.

The Mmamantswe Power Project is based on a 1.3 billion tonne indicated coal resource located near Botswana's border with South Africa and adjacent to key infrastructure.
Aviva signed Heads of Agreement with Mawana in June 2007 to develop the project. Under the initial agreement, Mawana maintains a 10-percent carried interest in Mmamantswe and the right to take up a further 15 percent on a fully funded basis. Aviva is required to undertake a Bankable Feasibility Study (BFS) to complete the earn-in.

However, the partners are negotiating an outcome whereby Aviva may allow Mawana to dispose of part of its interest to facilitate the entry of a strategic partner to the project, and Mawana will waive Aviva's requirement for a BFS.

The partners concur that the entrance of the right partner could greatly assist in accessing the South African coal and power markets and that the early resolution of project ownership will improve the commercial certainty for incoming power partners and customers.

Aviva CEO, Lindsay Reed, said the Mmamantswe project was an outstanding success for Aviva, progressing from two historical drill holes to a billion tonne resource in less than a year.

"The size of Mmamantswe and its proximity to the South African fuel and power market has generated considerable interest from potential investors, development partners and customers," Reed said.


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