Joint Venture Agreement in Sierra Leone with BHP Billiton

In May 2004 Mano signed a Heads of Agreement for a Joint Venture with BHP Billiton for kimberlite diamond exploration within highly prospective and under explored 9,700km2 REPL licence, underlain by the diamond bearing Archaean age Man Craton.

The MoA commits the partners to concluding a full Joint Venture Agreement once the first phase of a four-phase exploration and development programme has been completed as follows:

Phase-1: comprises a licence-wide reconnaissance stream sampling survey over a 12-month period, the results of which will determine whether to proceed to Phase-2.

Phase-2: comprises a structured follow-up programme that may include detailed stream and loam sampling, airborne geophysics (possibly involving BHP Billiton's Falcon airborne gravimetric system in addition to magnetics and electro-magnetics), kimberlite drilling and evaluation over a 24-month period.

Phase-3: Subject to satisfactory results, BHP Billiton may elect to earn an additional 19% through financing the completion of a pre-agreed feasibility programme, over one or more kimberlites considered to have economic potential, within 3 years of completion of Phase-2.

Phase-4: At Mano's option, BHP Billiton can earn an additional 10% (bringing its total interest to 80%) through financing to completion of mine construction. Mano may elect, however, to co-finance Phase-4 and maintain the project equity at BHP Billiton 70% and Mano 30%.

BHB Billiton will be operators and managers of the project, but will use Mano's technical and geological teams to conduct the first phase fieldwork. The work programme will commence immediately.

Click here to see Mano's news release with further details.

REPL