La Mancha Resources – News Release
Vancouver, Canada – La Mancha Resources Inc. (“La Mancha”) today announced that it has entered into a definitive agreement dated May 19, 2006, (the “Agreement”) with Compagnie Générale des Matières Nucléaires SA (“CFMM”), a wholly owned subsidiary of Areva NC, to create an international diversified gold company with gold producing and exploration assets in Australia, Ivory Coast, Sudan and Argentina. The Agreement will effect a reverse take-over (the “Transaction”) under applicable securities law and TSX Venture Exchange policies, and is structured as an exchange whereby CFMM is to be issued 90 million common shares of La Mancha which will represent on the closing at least 60% (including common shares issued pursuant to the Private Placement described below) of the issued and outstanding share capital of La Mancha, and seven million warrants to purchase common shares at an exercise price of C$2.00 per share, in exchange for the conveyance to La Mancha of all of the shares of Mines & Resources Australia Pty Ltd (“MRA”) and Compagnie Minière Or SA (“Cominor”). Together MRA and Cominor own Areva NC’s gold business (the “Gold Business”), with MRA holding all of Areva NC’s gold assets in Australia, and Cominor holding all of Areva NC’s gold assets in Africa. It is expected that the Transaction will close on August 8, 2006. Areva NC is an arm’s length party to La Mancha and a state corporation of the Republic of France.
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