Dahava Resources Ltd.

December 08, 2006 18:04 ET

Dahava Resources Ltd. Announces Agreement to Acquire Diamond Mineral Properties

CALGARY, ALBERTA--(CCNMatthews - Dec. 8, 2006) - Dahava Resources Ltd. ("Dahava") announced that it has entered into a binding letter agreement ("Agreement") to acquire all of the issued and outstanding shares of Cosmopolitan Ventures Limited ("CVL"), a British Virgin Islands company, from the Goldstein Family Trust and Ravi Singh (the "Vendors") by issuing an aggregate of 100,000,000 common shares of Dahava ("Common Shares") at a deemed price of CDN$0.05 per Common Share and reimbursing the Vendors for expenses of approximately US$750,000 relating to the acquisition of the mineral properties indirectly owned by CVL. Mr. Ravi Singh is the President, Chief Executive Officer and a Director of the Corporation.

CVL indirectly owns exclusive prospecting licenses and permits on tenements on the north bank of the Lower Orange River, Namibia commonly referred to as "Block 4" and "Blocks 16 to 20" comprising 3,000 hectares and 19,250 hectares, respectively, mining equipment and assets, and an option to acquire mining licenses and prospecting rights to producing diamond properties in South Africa comprising 1,721 hectares commonly referred to as the Oersonskraal 250, Mahemspannen 217 and Ganspan194 Properties. Technical Reports for the Namibia and South Africa diamond properties can be viewed at www.sedar.com.

The Corporation will also issue 1,000,0000 Common Shares at a deemed price of $0.10 per Common Share to Uithoorn Resources Limited, a British Virgin Islands company, which is at arms' length to the Corporation and the Vendors, in full payment of corporate finance advisory fees.

The Agreement is subject to certain conditions, including due diligence and approval by the Board of Directors of the Corporation, with Mr. Singh abstaining from voting.

The Corporation will offer up to 30,000,000 Common Shares at a price of $0.10 per Common Share for gross proceeds of CDN$3,000,000 (if fully subscribed), which will be used to meet expenses relating to the commencement of trial mining and exploration activities on the Namibia properties. The Corporation also intends to conduct a debt offering of convertible securities to fund the acquisition of the Oersonskraal 250 property.

Contact Information

  • Dahava Resources Ltd.
    Eitan Dehtiar
    Chief Financial Officer
    (867) 766-3449