GFM Griffin Mining Limited

RNS Number:6665C
Griffin Mining Ld
26 April 2001


GRIFFIN MINING LIMITED

GRIFFIN EARNS INTEREST IN OZMOSA LIMITED

JOINT VENTURE BETWEEN SPORTINGBET.COM AND OZMOSA LIMITED

Griffin Mining Limited ("Griffin" or "the Company") is pleased to announce
that it has earned a 4% interest in Ozmosa Limited ("Ozmosa"), a sports
betting and casino operator in the East and South East Asia regions. The
interest in Osmoza has been earned by Griffin in return for facilitating the
transaction.

Ozmosa has entered into agreements with Sportingbet.com (UK) plc
("Sportingbet") for the joint development of the Asian gaming market. As part
of these agreements Sportingbet is acquiring a 1% equity interest in Ozmosa
for a consideration of #1 million, together with an option to acquire a
further 18.9% of the issued share capital of Ozmosa for #25 million. 

Ozmosa is currently considering a flotation of its shares on AIM.  The
directors of Griffin are considering, if and when such a flotation occurs, the
distribution in specie of some of its holding of Ozmosa shares to its
shareholders and / or the realisation of some to fund the construction and
commissioning of Caijiaying.  A decision on this will be made at the time of
the Ozmosa flotation and a further announcement will be made at that time.

The Chairman, Mladen Ninkov, commented; "The Company remains totally committed
to bringing the Caijiaying zinc-gold deposit into production as soon as
possible, however, the Company continues to have significant deal making
expertise in its staff which it occasionally will mobilise on other
transactions, such as in the float of Griff-Tech.com plc, where Griffin's
shareholder value can be significantly enhanced. We believe Ozmosa is such a
transaction. The shareholders of Griffin, for no outlay, have been
substantially rewarded for the efforts their management have made in this
transaction. Hopefully this will be reflected in Griffin's share price as the
true value of Ozmosa becomes apparent."    

Sportingbet.com (UK) plc has today made the following announcement in
connection with its agreements with Ozmosa for the joint development of the
Asian gaming market:

"Sportingbet.com (UK) plc, the global online sportsbook, has signed an
exclusive 5 year contract with Ozmosa Limited, a substantial network of gaming
sales agents in East and South East Asia, to provide online sports betting and
gaming facilities.  The deal will compliment the existing marketing agreements
that Sportingbet.com has in the region, providing it with one of the most
established platforms in this important market.

Ozmosa Limited, through its sales network, extensive marketing expertise and
knowledge of the region, has attracted over 7,000 active customers, generating
revenues of #80m, albeit from a limited product offering.  Sportingbet will
receive royalties equal to 45% of the gross margin on all sports bets and 10%
of the gross margin on all casino bets. Ozmosa's current offering consists of
sports betting on televised US baseball and the casino game,  Baccarat. With
the introduction by Sportingbet of an extensive range of new sports betting
products, there is significant scope for future revenue growth. Sportingbet
anticipates future revenue streams to be split 60% sports betting, 40% casino.
 

Sportingbet will provide Ozmosa with #1m consideration for the benefits of the
contract.  Sportingbet will receive share capital in Ozmosa equal to 1% of the
issued share capital of the Company and will be granted options over a further
18.9%.  

East and South East Asia is one of the world's most lucrative on-line sports
betting markets, and is growing rapidly.  This growth is set to expand
further, particularly with the start of the 2001 European Soccer season, when
live soccer will be televised into many parts of the region for the first time
ever.  Sportingbet will provide customers with the opportunity to bet on
soccer and other major global sports. Importantly, Sportingbet will have a
substantially enhanced presence in South East Asia, prior to its hosting of
the 2002 World Cup, predicted to be the biggest global sports betting event.

Ozmosa has a well established sales and distribution network which is highly
successful. However, in order to capitalise upon the full potential in the
region, a partner was required who could provide a robust international
software platform with a global sports betting offering, and online financial
processing in a well regulated environment.  Sportingbet were deemed ideally
placed to compliment Ozmosa existing skills and significantly expand the
revenue potential.

Under the terms of the contract, Ozmosa will be responsible for all marketing
expenditures into the region.  Sportingbet will provide all of the risk
management, software functionality, financial management and administration,
using its existing international software platform and multi currency online
transaction processing.  All of the bets landed under the contract will be
managed through Sportingbet's Alderney base.  

Sportingbet now has exclusive agreements in place with Ozmosa and Singinvests
which cover the whole of Asia.  These agreements are complimentary and allow
Sportingbet to enter into additional agreements in the region where
appropriate.   

Commenting on the deal, Mark Blandford, Managing Director, Sportingbet.com
said: "Asia contains a number of very attractive markets and we believe that
Ozmosa's coverage into East and South East Asia is complimentary to our
existing activities in the region. We believe that Ozmosa is an ideal partner
and will help Sportingbet.com consolidate its on-going strategy to become the
leading on-line global bookmaker. Sportingbet's online expertise combined with
Ozmosa's local knowledge will prove to be a very powerful combination.  We
have had great success with similar marketing deals which have been
established in other Asian territories". 

Gordon McIntosh, Managing Director Ozmosa Limited said: "Sportingbet.com have
the vision and understand the opportunities in the Asian market. They have the
technical expertise, product knowledge and risk management expertise, making
them the ideal partner for Ozmosa.  This contract will provide substantial
incremental shareholder value to both parties.""  



Further information

Mladen Ninkov - Chairman                                                
Telephone: +44(0)20 7663 9855

Charles Dampney - Charles Stanley                                         
Telephone: +44(0)20 7739 8200

Griffin Mining Limited's shares are quoted on the Alternative Investment
Market (AIM) of the London Stock Exchange (symbol GFM). 
The Company's news releases are available on the Company's web site:
www.griffinmining.com

Griffin Mining (LSE:GFM)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Griffin Mining (LSE:GFM)
Historical Stock Chart
Von Jul 2023 bis Jul 2024