Otjozondu Holdings Raises Shareholding in Otjozondu Manganese Project

Shaw River Manganese Ltd. (ASX:SRR) announced that its subsidiary, Otjozondu Holdings (Pty) Ltd., has increased its shareholding in the Namibia-based Otjozondu manganese project to 87.2 percent. Previously it sat at 84 percent.

As quoted in the press release:

Since early 2011, Oreport Holdings (Pty) Ltd (‘Oreport’), the minority shareholder in the Otjo Project, has elected not to fund its share of the project costs and Oreport has now again, elected not to exercise its right under the Shareholders Agreement to participate, pro-rata, in the issue of new ordinary no-par value shares in Otjozondu Mining (Pty) Ltd (‘Otjozondu Mining’), the holding company for the Otjo Project. As a result, Shaw River’s interest in the Otjo Project has increased from 84.0% to 87.2%.

Shaw River through its subsidiary, Otjozondu Holdings, plans to fund all forward expenditure at the Otjo Project by equity subscription via pro rata offers of equity by Otjozondu Mining (as has been done in this instance). Should Oreport not participate in future pro rata offers of equity by Otjozondu Mining, Shaw River through its subsidiary, Otjozondu Holdings, will have the opportunity to further increase its interest in Otjozondu Mining and the Otjo Project.

Click here to read the full Shaw River Manganese Ltd. (ASX:SRR) press release.