Mano River Resources Inc (MANA)

Mano River Resources, the exploration and development company focussed on gold, diamonds and iron ore in West Africa, is pleased to announce that the Government of Liberia has granted a two year extension to its Putu Range Iron Ore exploration licence, extending it to the 30th September 2010.
This licence extension enables the Company to proceed to close the agreement previously signed on the 22nd May 2008 with its chosen iron ore partner, Severstal Resources, having satisfied all material legal requirements.  On closing, Severstal Resources, through its wholly owned indirect subsidiary, will take up its right to become a 61.5% shareholder in the Company’s iron ore subsidiary by investing US$30M to advance the Putu iron ore project to a definitive feasibility study.  Simultaneously on closing, US$12.5M is also released to Mano to inject capital into its other properties, primarily to advance the gold strategy.

The Company expects closing to take place in the coming weeks during November.

Commenting on the development, Luis da Silva, Chief Executive Officer of Mano, said,
“After collaborating with the Ministry and Government of Liberia in recent months I am delighted that the joint venture company will be able to accelerate the development in south eastern Liberia.  Severstal Resources have proven to be a strong and capable partner which has enabled us to cement an excellent working relationship in the last five months.  This will give Mano a strong financial standing to deliver on our strategy of developing our key assets.  Already with Severstal Resources’ technical input, our current programme is progressing well with over 3,000 metres of the initial phase drilled.”