Perth-based CityView Corporation Ltd has entered into deal with an Angolan firm to form a logistics company to support the country's mining industry.
Perth-based CityView Corporation Ltd has entered into deal with an Angolan firm to form a logistics company to support the country's mining industry.
Under the deal, oil and gas explorer CityView will take a 49 per cent interest in the creation of Angolan Special Purpose Vehicle, with the remaining interest to be held by government-owned ENDITRADE.
The JV will be responsible for the development of new port facilities in key locations to help with the importation of mining equipment.
CityView anticipates a significant return on its investment within the first year of the JV's operations.
"As part of the agreement, ENDITRADE will contribute independently valued assets and CityView will contribute equity capital on an equal basis. The amount and phasing of which is subject to final agreement between the parties," City View said.
Below is the full announcement:
CityView Corporation Limited ("CityView") is pleased to advise that it has entered into an agreement with ENDITRADE for the development of transportation and supply logistic services for support of the Angolan mining industry.
ENDITRADE is a logistics company wholly owned by ENDIAMA which is the Angolan Government department responsible for the development of Angola's diamond industry. For more information on ENDIAMA and its subsidiaries, please visit www.endiama.co.ao/eng/default.php.
Under this agreement CityView will enter into a joint venture with ENDITRADE to create an Angolan Special Purpose Vehicle (SPV) which will be owned 51% by ENDITRADE and 49% by CityView.
Agreements are already well developed between internationally recognised manufacturers and ENDITRADE including:
- Supply of Mining equipment
- Truck manufacturing and assembly plants
- Fuel storage tank farms
- Delivery systems of fuel and other materials to mining projects
- General supply logistic services
This exclusive business will grow extensively with the rapidly expanding mining industry in Angola. The joint venture will include development of new port facilities in key locations to assist in the importation of mining equipment.
CityView's CEO, Mark Smyth said; "CityView has accepted ENDIAMA's offer to be a part of their logistics business as it allows us to diversify into an area that is already generating positive cash flow".
"Entry into this agreement not only strengthens our connections in Angola but will greatly assist us in the execution of our own projects through Fortitude Minerals and Pensador Resources".
Under the business plan for the JV developed by ENDIAMA, it is anticipated that CityView will receive a significant return on its investment within the first year of its operations. CityView will also benefit from tax holiday provisions available from this type of investment under the Angolan private investment law.
As part of the agreement, ENDITRADE will contribute independently valued assets and CityView will contribute equity capital on an equal basis. The amount and phasing of which is subject to final agreement between the parties.
This development, in conjunction with those of Pensador Resources Inc., with whom it is intended CityView will merge, is part of CityView's overall strategy for long term investment in West Africa.
