Botswana’s Economy Is Back on Strong Growth Path on Gem Exports, IMF Says

Bloomberg

Botswana’s economy is “back onto a strong growth trajectory” due to a rebound in diamond exports and good government policies, the International Monetary Fund said. While inflation has accelerated there isn’t firm evidence of generalized price pressures in the southern African nation’s economy and the IMF supports the central bank’s neutral stance on interest rates, the Washington-based institution said in a statement on its website. The government must continue efforts to reduce its large state wage bill, it said.

The world's premier mining and mining investment website Exploration program finalized for Botswana coal projects & update on Kenya coals basin tender

Mineweb

Key Points:

• Initial exploration drilling program for Botswana finalised following receipt of report from the Company's independent South African consulting geologists
• 60 borehole drilling program to be completed in 2011 through two phase exploration drilling program to commence upon appointment of Botswana drilling contractors
• Exploration drilling to focus initially on the Serowe Thermal Coal Project with subsequent drilling to commence on the Kweneng Thermal Coal Project
• Tender documents received from the Kenyan Ministry of Energy for 4 coal concession blocks in the Mui Coal Basis with submissions due in July 2011

Emerging mid-tier South African focussed coal producer Continental Coal Limited (ASX: CCC) ("Continental" or the "Company") is pleased to provide an update on its planned exploration activities on its Serowe and Kweneng thermal coal projects in Botswana (together the "Projects") following receipt of the planned initial exploration and drilling programs for each of its projects from its independent geological consultants. The Company is also pleased to confirm that it has received a "Request for Proposals for Concession of Mui Coal Blocks" and the accompanying data and will be submitting its detailed proposal as required to the Kenyan Ministry of Energy in July 2011. "We are extremely pleased to have finalised our planned initial exploration program for our Botswana prospecting licenses and to be in a position of being able to commence work in-country very shortly. In addition, having now received the tender documents from the Kenyan Ministry of Energy we are busy preparing our submission to position ourselves to secure one of the 4 exciting coal concession blocks available." commented Continental's Executive Director, Jason Brewer. "It is very pleasing to be able to offer our shareholders such exploration upside in these highly prospective and strategically located coal regions, particularly coupled with export and domestic thermal coal sales from our two producing open cast mines in South Africa and ahead of planned announcements of the Penumbra Coal Project development and funding plans due to be released to the market in the coming days" Mr Brewer added.

S&P affirms Botswana's ratings

Business LIVE

Standard & Poor's Ratings Services has affirmed its 'A-' long-term and 'A-2' short-term foreign currency sovereign credit ratings on the Republic of Botswana and on the Bank of Botswana, the country's central bank.

"We also affirmed the 'A' long-term and 'A-1' short-term local currency sovereign credit ratings on Botswana and its central bank. The republic's 'A+' transfer and convertibility assessment is unchanged. The outlooks on Botswana and the Bank of Botswana are stable," the rating agency said. It said the affirmation reflects Botswana's strong public sector balance sheet, even though this recently deteriorated. It also reflects its well-managed minerals-based economy, and long record of political stability. These factors are somewhat offset by the country's narrow economic base, which is vulnerable to shocks; heavy reliance on diamond sector performance, despite efforts to diversify; fiscal challenges; and still-significant development needs. "Botswana's stable politics, track-record of prudent macroeconomic policies, and high level of transparency are strong by emerging market standards. However, key structural credit constraints are the country's narrow economy, together with income levels that are amongst the lowest in the 'A' category, high unemployment, and the impact of the HIV/AIDS pandemic. "Botswana is the world's top producer of diamonds and the diamond industry remains the country's economic locomotive. Abundant diamond resources, well-managed and exploited, and a social-democratic-style welfare state, have helped Botswana to develop from one of the world's poorest countries to a middle-income country with GDP per capita of about $7,500 in 2010. "The global downturn hit Botswana hard, as the country's key commodity markets, in particular the diamond market, contracted sharply and external demand slumped. But since mid-2010, the market has rebounded sharply. Real GDP contracted by 4.8% in 2009, but expanded again by an estimated 7.2% in 2010. Our projections indicate that it should remain fairly strong in fiscal years 2011-2013, provided that the recovery in the global demand for diamonds continues. "The stable outlook balances the fiscal difficulties the government faces with a strong public sector external balance sheet. The rating could come under pressure if the government suffered further fiscal slippage and did not meet its consolidation plans, due to weaker than anticipated revenues or to higher than forecast expenditures, which could lead to greater and more rapid dissipation of asset buffers. "Botswana's creditworthiness could improve if reforms are implemented more quickly, dependence on mining continues to decline, and private sector development broadens. However, we do not expect this to be achieved within the current forecast period," S&P said.

Sono Resources Appoints Dr. Luc Antoine as Director

PRNewswire

Sono Resources Inc. (OTCQB: SRCI) reports that Dr. Luc Antoine has joined Sono as a Director of the Company. Dr. Luc Antoine is a professional geologist and geophysicist who has worked on the African continent in such countries asAlgeria, Libya, Tanzania, Sudan, Mozambique, South Africa, Angola, Congo, Gabon, Mauritania, Senegal, Morocco andBotswana for over 20 years. His expertise is focused on exploration, data security and quality control, data acquisition, and on data interpretation. Dr. Antoine is co-founder and technical director of GeX Surveys, a company specializing in airborne geophysical data acquisition contracting services since 2006. He is also co-founder and technical director of Geoscientific Exploration Services, a company offering geological, geotechnical, remote sensing and geophysical consulting and contracting services since 1999. During his career, Dr. Antoine has been extensively involved in developing exploration programmes for leading mining and mineral companies including Anglo American Gold Corporation (1986 to 1987) and Anglo American Gold's base metals operations (1980 to 1986), as well as Falconbridge Exploration (1973 and 1978 to 1979). He also taught exploration methodology at the University of the Witwatersrand from 1987 to 2002. A resident of South Africa, Dr. Antoine is an Associate Member of South African Geophysical Association (President 1993), a member of the Geological Society of South Africa, the European Association of Geoscientists and Engineers, and the Society of Exploration Geophysicists.

CIC ENERGY TO OPEN DATA ROOM TO OTHER POTENTIAL ACQUIRERS

CanadianBusiness.com

CIC Energy Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE:CIC Energy) today announces that its board of directors has approved the termination by the Company of the Acquisition and Supplementary Agreements with JSW Energy Limited ("JSW") in accordance with their terms as the proposed acquisition of the Company by JSW will not be completed by the required deadline of May 31, 2011. A notice of termination will be sent to JSW on June 1, 2011. CIC Energy believes shareholder interests will be better served by pursuing an alternative transaction. While CIC Energy is willing to continue discussions with JSW Energy, any such discussions would have to be on a non-exclusive basis. CIC Energy intends to open its data room to potential acquirers as soon as practicable following termination of the agreements with JSW. CIC Energy has already received several expressions of interest as was reported in the Company's news release of April 28, 2011. It is expected that CIC Energy advisors, Deutsche Bank Securities Inc. and Motilal Oswal Investment Advisors Pvt Ltd., will begin speaking with the advisors of prospective acquirers shortly thereafter. "It is disappointing that after almost eight months the transaction with JSW has not been completed despite several extensions to the original deadline," said Greg Kinross, President of CIC Energy, "we thank shareholders for their patience and understanding and remain committed to unlocking value for shareholders". "We look forward to beginning discussions regarding the acquisition of the Company with other major corporations that have expressed interest in CIC Energy in recent months, as well as other parties," said Warren Newfield, CEO of CIC Energy. "We believe this is the best course of action for shareholders. We are prepared to continue the process with JSW, but only on a non-exclusive basis."

Arbitration by GCL Botswana: In respect of the arbitration process recently initiated by GCL Botswana Limited ("GCL Botswana"), CIC Energy continues to regard it as being entirely without merit. Although discussions have taken place between the Company and GCLBotswana with a view to settling the dispute and terminating the underlying shareholders' agreement, the situation remains unresolved. The Company is open to further discussions with GCL Botswana, but is considering all of its options to resolve its position.

Conference Call: CIC Energy will host a conference call with Warren Newfield, CEO and Chairman, and Greg Kinross, President to discuss this news release on Tuesday May 31, 2011 at 4:00 p.m. Eastern Time (10:00 p.m. SAST). To participate in the conference call, investors and media from the US and Canada should dial 1-888-231-8191 prior to the scheduled start time. International callers should dial +1 (647) 427-7450.

CIC confident of finding new buyer after JSW deal breaks up

CIC confident of finding new buyer after JSW deal breaks up

CIC Energy is optimistic that it will receive offers from companies interested in its power-generation and coal-export projects in Botswana, after the firm terminated a takeover agreement with India's JSW Energy, chairperson Warren Newfield said on Tuesday. The company has been approached by “more than two” parties and is not concerned that it will not be able to secure a new offer, CIC executives told analysts on a conference call. They declined to provide more details, but, when pressed, conceded that the potential suitors included interest from India, as well as elsewhere in the world. CIC said earlier on Tuesday that it was also still open to nonexclusive negotiations with JSW, but that it “believes shareholder interests will be better served by pursuing an alternative transaction.” Shares in the company rose 5,3% on Tuesday, to C$3,16 apiece by 15:59 in Toronto. JSW, an Indian power utility, agreed in November last year to buy CIC Energy for C$7,75 a share, or about C$422-million. The parties have been trying to close the deal since then, and had set a deadline of May 31 for certain conditions to have been waived or met. JSW had wanted assurances from the government of Botswana related to a future power purchase agreement but was not able to reach an agreement before the cut-off date. CIC now intends to send a letter of termination to JSW, and will then open its data room to other potential buyers as soon as possible. “It is disappointing that after almost eight months the transaction with JSW has not been completed despite several extensions to the original deadline,” CIC president Greg Kinross said in a statement.

Continental Coal finalises Botswana exploration program, receives Kenya Mui Coal Basin tender documents

Proactiveinvestors (AU)

Exploration drilling is to focus initially at Serowe with subsequent drilling to commence at Kweneng. Jason Brewer, Continental’s executive director, said “we are extremely pleased to have finalised our planned initial exploration program for our Botswana prospecting licenses and to be in a position of being able to commence work incountry very shortly. "In addition, having now received the tender documents from the Kenyan Ministry of Energy we are busy preparing our submission to position ourselves to secure one of the 4 exciting coal concession blocks available.”

Bouquet joins Botswana Diamonds as non-exec director

Proactiveinvestors (UK)

"We have exciting years ahead in this company and I am sure that his wide diamond pipeline knowledge and commercial experience will be an asset to Botswana Diamonds and a complement to the expertise that we already have within the company." On appointment, Bouquet will be granted options over 250,000 ordinary shares in the company.These options have an exercise price of 6 pence, vest immediately, and expire on 27 May 2018.

SABMiller’s Sechaba Breweries Says Full-Year 2010 Profit Increases 10%

Bloomberg: "Botswana’s biggest beermaker, said full-year profit rose 10 percent to 240 million pula compared with a year earlier. The improvement in net income for the year through March was due to a change in the calculation of a 40 percent state tax on alcohol, the company said in a statement published in the Gaborone-based Mmegi newspaper today. It declared a dividend of 24 thebe a share. Clear beer sales declined 0.2 percent compared with a year earlier and sales of sorghum beer fell 1.2 percent, the company said."

Botswana says to raise bank reserve requirements

Reuters: "Botswana's central bank on Tuesday said it would raise banks' primary reserve requirement to 10% from 6.5% to reduce excess liquidity. 'Normally, an increase in the primary reserve requirement ratio implies monetary policy tightening,' the bank said in an statement. 'However, in this instance, the increase is unlikely to constrain supply of credit as, by definition, the funds mopped through the Bank of Botwana Certificates are 'excess' to what is required for productive lending.'"

Hana Mining Ltd.: Infill Drilling Continues to Encounter Thick Intersections of Copper-Silver Mineralization Along the North Limb of the Banana Zone

Highlights of Recent Drilling Results:

• Drilling is progressing as scheduled. Total drilling to date is approximately 12,297 metres (core and reverse circulation).
• These latest results confirm the continuity of copper-silver mineralization along the North Limb of the Banana Zone.
• Intercepts of 0.56% Cu and 11.0 g/t Ag over 27.9 metres (including 3.49% Cu and 69.0 g/t Ag over 1.5 metres) in hole HA-265-D, 0.47% Cu and 3.0 g/t Ag over 27.6 metres (including 1.24% Cu and 7.0 g/t Ag over 7.9 metres) in hole HA-273-D, 0.61% Cu and 11.0 g/t Ag over 16.8 metres (including 1.02% Cu and 21.0 g/t Ag over 8.6 metres) in hole HA-267-D and 0.54% Cu and 9.0 g/t Ag over 21.4 metres (including 0.89% Cu and 13.0 g/t Ag over 8.5 metres) in hole HA-260-D.

Discussion of Results:

The infill drilling program at North Limb North has confirmed that copper-silver mineralization is continuous and has consistent widths and in some sections it bifurcates into two high-grade zones within a very wide, lower grade, mineralized envelope (Figure 3). This drilling will allow for the conversion more mineral resources from the Inferred category into the Indicated category.

To view the three images associated with this release, please click the following link:http://media3.marketwire.com/docs/530hmgmaps.pdf.

Reinstate dismissed workers, abolish ‘no work, no pay’, utilise pyramid scheme, or strike continues

Botswana Gazette: "Solidarity and perseverance have brought us this far and no one should be intimidated by anyone. We are going back to work together!"

Botswana on the brink of collapse?

Business LIVE

"This shows that this man is undermining this country," Boko said, adding that Khama should step down because he had failed to deliver on the principles he enunciated when he was inaugurated as president in 2008.

17th June Dividend

BancABC: "Notice is hereby given that a final dividend of 33.52 thebe(gross) per ordinary share has been declared. This dividend will be payable on or about the 17th June 2011 to those shareholders registered at close of business on the 3rd June 2011."

Peermont may mull listing after restructuring

BusinessDay: "PEERMONT Global, the gaming and hotel group that owns Emperors Palace in Johannesburg, may consider a future listing on the JSE after it has completed a restructuring of its balance sheet. Peermont hoped to finish a review of its capital structure by the end of this year, CEO Anthony Puttergill said on Friday. 'We certainly may consider doing a listing at some time. We first need to finish our capital restructure, which would significantly strengthen our balance sheet.' The debt that was being reviewed was a shareholder loan worth about R3,3bn, he said."

History of the common monetary area

"The common monetary area (CMA) of the rand in southern Africa has its roots in an informal monetary union that made the South African pound the only legal tender in SA, the former Bechuanaland (now Botswana), Lesotho, Namibia and Swaziland after the establishment of the SA Reserve Bank in 1921."