CityView Corporation Limited (ASX:CVI) Progress Report On Velvogen
Perth, Nov 2, 2009 AEST (ABN Newswire) - CityView Corporation Limited (ASX:CVI)(PINK:CTVWF) advises that in order to expedite the proposed coal fines project, the Board of Velvogen (Pty) Ltd ("Velvogen") have invited CityView's CEO Mr M. Smyth to join its Board.
On October 19, 2009 Velvogen received confirmation of:-
(i) the supply to Velvogen of 750,000 tonnes of anthracite/coking coal fines for a minimum period of seven years at contract price;
(ii) the procurement of an off take agreement for the anticipated annual production of 600,000 tonnes per annum of briquettes; and
(iii) the arrangements for the Richards Bay loading facilities to export briquettes.
The progress of the pilot plant for the briquetting process has been sufficiently encouraging for CityView to proceed to the next stage of the transaction. Accordingly CityView is now pursuing the requisite steps to acquire the agreed 74% of the shares of Velvogen in consideration of the assignment of its receivable from Fortitude Minerals Limited of US$10,172,807. The remaining 26% of the shares of Velvogen are held under the Black Economic Empowerment regulations.
Mark Smyth Chief Executive Officer Tel: +61-8-9226-4788 Fax: +61-8-9226-4799