For immediate release: 15 October 2009
SIRIUS EXPLORATION Plc
("Sirius Exploration" or "the Company")
Acquisition of Adavale Holdings Pty Ltd
Sirius Exploration Plc (AIM: SXX, OTC: SRUXY), the diversified mining and exploration holding company focused
on North America and Australia, announces that it has agreed to acquire 100% of the ordinary shares in Adavale
Holdings Pty Ltd ("Adavale") for 150,000,000 Sirius Ordinary Shares of 0.25p ("Ordinary Shares"). This
consideration has been satisfied by Adavale's shareholders accepting 150,000,000 new Ordinary Shares in Sirius
at a price of 13p per share. However, the acquisition of 19,691,667 shares in which Jonathan Harrison and
Richard Poulden (the "Related Party Shares") are interested is subject to the passing of a resolution by Sirius
in general meeting as further set out below. Therefore, Sirius has today issued 135,150,000 new Ordinary Shares
to acquire 90.1% of Adavale and expects to complete the acquisition of the remainder in due course. Following
completion of the transaction, Sirius will have an issued share capital of 498,655,150 Ordinary Shares.
Application has been made for the 135,150,000 new ordinary shares, representing 27.1% of Sirius's enlarged
issued share capital, which will rank pari passu with the existing ordinary shares, to be admitted to trading
on AIM and trading is expected to commence on 21 October 2009.
Information on Adavale Holdings
Adavale, is a privately held Company incorporated in Queensland, Australia. It holds mineral exploration
permits covering nearly 400 sqkm in the Adavale Basin in Queensland, allowing for the exploration and
extraction of salt and potash and the creation of caverns for the storage of natural gas or potentially carbon
dioxide.
The two permit areas controlled by Adavale are the Listowel and the Alva. These were formerly held by
Queensland Potash and were to be transferred to AusPotash Corporation ("AusPotash") in exchange for the issue
of AusPotash shares, in the event that AusPotash met certain conditions. These conditions have not been met and
accordingly it is open to Sirius to acquire the properties directly.
Of the four Adavale permits which were originally controlled by Queensland Potash the Listowel and the Alva
represent over sixty percent of the land area. This is important not only from the potential mineral deposits
but also from the point of view of the size of the available storage area for Co2.
Adavale has not traded and has published no Accounts. A 43-101 report which includes these properties and those
held by AusPotash has been prepared and is available on the Company's website.
Reasons for the Acquisition
This completes Sirius acquisition of an area providing approximately 640sqkm of permits in the Adavale Basin.
The permits are contiguous and cover the majority of the Boree salt deposit.
Related Party Transaction
Two directors of Sirius (Mr Richard Poulden and Mr Jonathan Harrison) have minority interests in Adavale and
the acquisition of shares held by these interests will be subject to compliance with Section 190 of the
Companies Act 2006 and with AIM Rule 13 concerning related party transactions. Therefore, Sirius will take the
necessary steps to proceed with the acquisition of 19,691,667 Adavale shares in which respectively Mr Poulden
and Mr Harrison have an interest which will include inter alia convening a general meeting of Sirius to approve
the purchase of such shares. If and when that matter is taken forward, a further announcement will be made. For
the moment Sirius will not proceed with these steps and the acquisition of Adavale will exclude the Related
Party Shares.
Background on Sirius
Sirius is quoted on the AIM market of the London Stock Exchange in London and its shares are also traded in
North America through the use of an ADR facility. Sirius currently has interests in potash and salt caverns
through its subsidiaries Dakota Salts LLC and AusPotash Limited. It also has copper and gold interests in
Macedonia and a royalty interest in a tungsten mine in China.
Richard Poulden, the Chairman of Sirius, commented:
"The Boree Salt member is currently recognised as Australia's largest recognised potash and salt deposit. To
now control permits overlying some 640sqkm of the Boree Salt member provides significant commercial
opportunities for the Group - not only from the perspective of straight salt mining but also from the
perspective of using the land for Co2 sequestration or Co2 storage now that we own technologies in both of
these areas."
-ENDS-
Further Information:
Richard Poulden
Chairman, Sirius Exploration Plc. Tel: +971 556 232 672
richard.poulden@siriusexploration.com
Jonathan Harrison (Financial Director) Mobile: + 44 78 7988 7755
Jonathan.harrison@siriusexploration.com
Beaumont Cornish
Roland Cornish Tel: +44 (0)20 7628 3396
Gth media relations
Toby Hall Tel: +44 (0)20 7153 8039
Christian Pickel Tel: +44 (0)20 7153 8036
Website: www.siriusexploration.com
Sirius Exploration