Sipa Resources is pleased to announce that Sipa East Africa, a wholly owned subsidiary of Sipa, has completed the acquisition of the shares in SiGe East Africa , from Geocrust to become the 100% holder of the Kitgum-Pader base and precious metals project in Uganda, East Africa.

Under the terms of the acquisition, Geocrust sold its sh ares in SiGe East Africa (the company which currently holds the Kitgum-Pader project) to Sipa East Africa, a wholly owned subsidiary of Sipa and holder of the remaining shares in SIGE East Africa, in exchange for ordinary fully paid Sipa shares to the va lue of A$453,242. The number of Sipa shares issued was determined by reference to the volume weighted average price of Sipa shares in the 30 trading days immediately prior to 24 November 2014. Based on volume weighted average price, 12,803,447 Sipa shares have been issued.

The A$453,242 figure reflects the value of the Geocru st shares after adjustments for the significant cash contributions made by Sipa to fund the ongoing exploration of the project.

Geocrust has agreed not to dispose of any Sipa shares issued pursuant to the transaction for a period of 12 months from the date th ey are issued. The voluntary escrow period will end 14 January 2016.

Background

The Kitgum-Pader Basemetals & Gold Project comprises 15 e xploration licences and one application, covering 6,490 square kilometres in ce ntral northern Uganda, East Africa. The Project came about following the acquisitio n in 2011 of relatively new airborne magnetic/radiometric data sets over East Africa , and the subsequent geological/metallogenic interpretation of the data set s by Sipa and Geocrust. Geocrust is a private company established by the late Dr Nick Archibald.

During field reconnaissance in December 2011, Sipa and Geocrust recognised rocks strikingly similar to the host ‘Mine Series’ sequence at the giant Broken Hill Lead-Zinc- Silver Deposit in NSW, Australia, to the northwest of Kitgum, Uganda. It was these observations that led to formation of an incorporated joint venture, SiGe East Africa Pty Ltd (SiGe) and Sipa Exploration Uganda Limited (SEUL), and the application and subsequent granting of mineral tenements.

Fieldwork commenced in early 2013, and by the end of 2 014, some 44,000 soil samples had been collected, along with geological mappi ng by Nick Archibald. The results of the field work, subsequent drilling of soil t argets, and confirmation of those targets using geophysical surveys, have led to the discover y of 2 potentially economic mineral systems.

  • Broken Hill-style Lead-Zinc-Silver, at Pamwa ; and
  • Intrusive hosted Nickel-Copper sulphide minera lisation at Akelikongo

The EM conductors at Akelikongo and IP conductors at Pamwa will assist drill targeting to test for massive nickel sulphides at Akelikongo and extensions to the Zn, Pb Ag mineralisation at Pamwa. A limited diamond dr ill program of around 1500m is planned to test both these targets commencing in late Ja nuary. The soil sampling has also highlighted a number of other Zinc and Nickel targ ets which require drilling.