**********NEWS RELEASE***********
FOR FURTHER INFORMATION PLEASE CONTACT:Nora Exploration Inc.Mr. Pierre LeveillePresident(514) 846-2133(514) 846-1435 (FAX)EMAIL: Info@nora.comorNora Exploration Inc.Bernard J. TourillonExecutive Vice-President(514) 846-2133(514) 846-1435 (FAX)EMAIL: Info@nora.com
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWSFOR:
NORA EXPLORATION INC.ME SYMBOL: NXI JANUARY 27, 2000
Nora Exploration Inc. Announces the Sale of its 47 %Interest in Otjua Minerals (PTY) Ltd.
MONTREAL, QUEBEC--NORA EXPLORATION INC. "Nora" is pleased to announce that it has completed an agreement with Elizabeth Bay (PTY) Ltd. ("Elizabeth Bay") for the sale of its 47 % interest in Otjua Minerals (Pty) Ltd. ("Otjua"). The negotiations that began in March 1998 were concluded with Nora's acceptance to sell its 47% interest and equipment for a gross consideration totaling C$900,000. At the closing of the transaction, Mr. Johannes A. Kleynhans and Mr. Adriaan Murray Louw, both representatives of Elizabeth Bay, tendered their resignations as Board members of Nora. Furthermore, Elizabeth Bay has transferred 4 million of itsowned shares in Nora to a group of five investors formed by Kestrel S.A., a financial services company located in Switzerland. The group of investors has also subscribed for 2 million warrantsat a cost of C$200,000. Each full warrant allows the holder to acquire one share in Nora at a cost of $0.30 for a period not exceeding eighteen months. The issuance of the warrants is subject to certain regulatory approvals which are expected shortly. The proceeds of the transaction, totaling C$1,100,000, will be utilized to fund the Corporation's exploration programmes,which include grap sampling on the Namibian Gemstones concession and a geophysical survey on the Woduna concession.
On November 21st, 1996 Nora acquired fro mElizabeth Bay a 47 % interest in Otjua at a cost of C$4.7 million. Through it's affiliated company, Diaz Point Exploration (Pty) Ltd. ("DPE"), Otjua has a contract with Namdeb (a joint-venture company owned equally by the Namibian Government and De Beers Centenary A.G.) todevelop the Otjua concession. Located on the Namibian coastline, the concession stretches 140-k msouthwards fro mLuderitz to North Rock. It includes the beach up to 100 meters wide above the high water mark with certain rights to the shallow water fro mthe shore.
In January 1997, notwithstanding the fact that DPE's contractual agreement was still valid, Namdeb requested that the contract be renegotiated. The changes proposed by Namdeb would have considerably reduced the value of Nora's investment in Otjua. In essence, the proposed changes would have significantly modified the boundaries of the concession by excising rich land based zonesin the southern portion of the concession (South Bogenfels region)and at least 50 % of the marine zones. In exchange, Namdeb proposed to replace the excised zones with essentially untested land based zones of limited potential located north of Elizabeth Bay above the 100 mhigh water mark. Moreover, Namdeb proposed to include the right for it to terminate the contract on a 30-days notice. Nora's management considered that the proposal have drastically reduced Otjua's value Nora also had to contend with a stipulation in the original contract between DPE and Namdeb in terms of which "any discoveriesand all mining and production records" were to remain strictly confidential and become the property of Namdeb and that Namdeb's permission was required before the information could be made public. In January 1997, both DPE and Namdeb requested that Nora refrain from releasing any information until a new agreement was in place. Given that to date no new agreement has been signed, Nora is still subject to the imposed information ban. The uncertainty of the negotiations has prevented investments thatwould have add value to the project. The investment having negative repercussions on Nora's remaining operations, the Board of Directors decided that it would be a priority for Nora to divest itself of Otjua to avoid further loss of value.
Management considers this transaction as very positive for the company and an important step forward. It now releases the Corporation to concentrate on and implement its acquisition and exploration strategies to discover and develop world class diamondresources within its highly prospective 24,000 sq. km. marine concession areas off the coast of Namibia.
Nora Exploration Inc., is a Canadian based exploration and mining company, actively involved in the acquisition, exploration and development of major diamond properties in Africa. The Corporation's large and prospective concession holdings, together with its growth strategy, place it among the important participants in the marine diamond business. Its shares are traded on the Montreal Stock Exchange under the symbol NXI-ME. -30-
|
