CityView Forms Joint Venture into Angolan Transport & Logistics Business
PERTH, Australia--(Business Wire)--
CityView Corporation Limited (OTCBB: CTVWF, ASX: CVI) ("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.
CEOcast, Inc. for CityView Corporation
Dan Schustack, 212-732-4300
Copyright Business Wire 2008
