Aziana Limited selling its Manatenina bauxite project to Thankys Exports

Aziana Limited is selling off its Manatenina bauxite project of Madagascar to Thankys Exports Pvt. Ltd and a conditional sale agreement has been decided upon by the two parties. As per the conditions of the purchase, the buyer company will pay a total purchase amount of $2 million to seller company in addition to a royalty of $0.50 per ton of bauxite extracted from the mines.

A minimum royalty amount agreed upon in the agreement is $200,000 per annum that Thankys has to pay to Aziana whether there are any mining activities taking place or not. In case of mining, the minimum royalty amount will stay the same or will be subjected to royalty obligation if more than 400,000 tons of bauxite is mined.

The agreement also lists a number of conditions including, completing a second phase of due diligence by Thankys Exports on its business, assets and operations and must be completed prior to 30 June 2015.

Aziana-subsidiary, Esama Minerals has identified additional amounts of high quality bauxite spread across 80 square kilometers of land which will alter the company’s previous estimated value of 10.09 million tonne. Under the agreement, Esama will be issued with mining license for the contemplated leases while entering into a service agreement with Thankys Exports for at least 12 months.