CityView Corporation Limited (ASX:CVI)(PINK:CTVWF) Chairman Manuel Africano's address to shareholders.
1. Coal: South Africa
I am very pleased to report that our briquette coal fines negotiations ended up more successfully than we had originally hoped for. Here are some of the key points which underpin my belief:
(i) Final settlement occurs only after the briquette plant has run continuously for 90 days at a minimum rate of 100 tonnes per hour. This gives sufficient time for CityView to ensure the success of the productive process.
(ii) The payment of the purchase price will be made by utilising the assignment of a receivable, fully written down in the books of CityView, and from the cash flow to be generated from the briquette operations. I wish to emphasise that there will be no cash payable by CityView.
(iii) As CityView will hold a 74% interest in the equity of the briquette manufacturing company, we will be able to control fully operational and financial requirements of the briquette company. This will enable us to expand the operations at our own pace and also give us access to environmental credits.
2. Minerals and Diamonds: Angola
Shareholders holding a majority interest in Fortitude Minerals Ltd ("Fortitude") and Angola Diamond Holdings Limited ("ADH") have recently merged their shareholdings on a formula established by Fortitude's auditor: being one Fortitude share for every 8.8 ADH shares.
CityView did not exchange its interest in ADH for Fortitude shares at the time but has entered into a put and call option to exchange its ADH shares on identical terms at any time prior to December 31, 2009. Upon such an event, the total issued capital of Fortitude will be 327,493,974 shares, of which CityView will own 75,088,849 shares representing 22.93%.
CityView is in the fortunate position of not having to pay for any of the ongoing work programmes in Angola and South Africa.
"However, CVI does need working capital for its ordinary corporate and administrative operations. The ASIC determination of 20 August 2009 means that CVI has real difficulties in raising funds other than under a prospectus. Given the costs involved in producing a prospectus, the Board considers it in the best interests of the company for shareholders to approve a larger raising of up to 300 million shares, which will be equivalent to 27.7% of the Company's undiluted issued capital. These shares will be issued at a minimum of the market bid price for the 5 days prior to the issue of the prospectus. A notice of meeting containing further details in this regard will be issued shortly."
About Cityview Corporation Limited:
CityView Owns a commodity portfolio: oil, copper, gold, diamonds and rare earths. CityView's strategy is to secure unencumbered good legal title to major oil, copper/gold, rare earths and diamond assets in Angola and Cameroon and upgrade them to bankable feasibility/ production. CityView is an Australian based resource company, listed on the ASX in Australia, OTCBB in the USA and FSE in Germany. Its main listing is on the ASX as CVI. The Company has excellent connections in West Africa and a good mixture of both technical and experienced management.
Manuel Africano Chairman Tel: +61-8-9226-4788 Fax: +61-8-9226-4799 Email: email@example.com www.cityviewcorp.com
Cityview Corporation Limited
Copyright (C) 2009 ABN Newswire. All rights reserved.