Australian Aviva Corporation Ltd has signed a letter of agreement with Mawana Minerals Ltd of Botswana to enter into a JV over the Mmamantswe Coal Project located 70 kilometer north of the capital Gaborone.

As per the agreement Aviva will spend USD 0.5 million over 18 months upon which Mawana will grant it an option to earn a 90% JV interest in the project after payment of USD 0.5 million and the completion of a bankable feasibility study. In addition Mawana will be free carried to production on its 10% interest and will have the right to take up a further 15% on a fully funded basis.

Mr Lindsay Reed CEO of Aviva said that "We have established a team of energy experts to develop the Central West Coal project in Western Australia and have access to this team to advance the Mmamantswe Project. A 12 month exploration and development plan for the Mmamantswe Project are currently being formulated with a drilling and quality testing program scheduled for the second quarter of 2007.”

The Mmamantswe Coal Project tenement area is positioned between the major infrastructure corridor of Botswana and the South African border. Rail, power and highway links to Gaborone and South Africa pass within 30 kilometer of the coal deposit. The Botswana Department of Geological Survey has published an inventory of 598 million tonnes of coal within the tenement area and puts the potential of the area at over 2 billion tonnes.