Mano River Resources Inc.

Mano River Resources Inc.

November 28, 2008 09:00 ET

Mano River Resources Inc.: Deal With Severstal Is Nearing Completion

LONDON, UNITED KINGDOM--(Marketwire - Nov. 28, 2008) - Mano River Resources Inc. ("Mano" or "the Company") (TSX VENTURE:MNO)(AIM:MANA) -

Mano River Resources Inc, the TSX-V and AIM-listed exploration and development company focused on iron ore, diamonds and gold in west Africa, provides an update concerning the investment in the Putu Range iron ore project in Liberia.

Further to the announcement on 24 October 2008, Mano and Severstal Resources, the mining division of OAO Severstal, would like to confirm 'Closing of the Agreement' on their joint operation of the Putu project. Financial, legal and technical due diligence is substantially complete and Severstal Resources has already advanced project funds, as per the facility in the agreement signed on the 22 May 2008. The amount received by the Company on the 27 October 2008 was the pre-agreed sum of US$1 million.

Completion of the deal is now formally set for 10 December 2008.

The amounts of the original agreement remain unchanged and on completion Severstal Resources, through its wholly owned subsidiary, will take up its right to become a 61.5% shareholder in the Company's iron ore subsidiary by investing US$30M to advance the Putu iron ore project to a definitive feasibility study. However, on completion, US$8.3 million will now be released to Mano with the balance of US$4.2 million to be paid two years from the date of completion on the 10 December 2010.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mano River Resources Inc.
    Luis da Silva
    +44 (0) 20 7299 4212
    Pelham PR
    Charles Vivian / James MacFarlane
    +44 (0) 20 7743 6670
    GMP Securities Europe LLP
    James Hannon
    +44 (0) 20 7647 2803
    Panmure Gordon (UK) Limited
    Edward Farmer
    +44 (0) 20 7614 8384