He said that while exploration at the Kakamega and Lake District prospects were encouraging, the company had spent about A$8 million on exploration and that at the current share price of A$0.087, continued funding of Kenyan exploration at the level required to drive value into the project would have have been very dilutive for shareholders.
"In that context, the sale of our Kenyan subsidiary to ABG is a good outcome for shareholders although we are all somewhat disappointed that market conditions did not allow Aviva to realize more of the obvious potential in Kenya."
Loftus-Hills said the funds provide Aviva with substantial flexibility to pursue growth options either in the existing assets in Botswana or from new projects.
He added that in Botswana, consultant Earthtec's Environmental and Archaeological Impact Assessment for the Mmamantswe Coal Project had not identified any major impediments to the project's development.
Aviva's exploration licences for its coal project were also renewed for a further two years and it will continue to consider adding to its coal portfolio in Botswana.
Botswana's Government had also presented in January 2012 the outcome of the Coal Road Map Review that the company believes provides many positives for the development of Mmamantswe.
Loftus-Hills also highlighted the institutional support Aviva has received, pointing to both The Sentient Group and Perth-based investment company Marford Group's 10.5% and 6.2% shareholdings respectively.
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