Mukuba announces closing of private placement financing

TORONTO, Sept. 27, 2011 /CNW/ - Mukuba Resources Limited (TSX-V:MKU) ("Mukuba" or the "Company") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement offering of up to 20,000,000 common shares at a price of $0.15 per share aggregate gross proceeds of up to $3,000,000 (the "Offering"), pursuant to which the Company issued 4,974,666 common shares for aggregate gross proceeds of $746,199.90. The Company expects to issue additional shares pursuant to the Offering in a subsequent closing on a closing date to be determined.

The Company intends to use the net proceeds from the Offering for exploration of the Company's Northcore and Nyimba Projects in Zambia and to begin to explore develop a copper and base metals project in the Democratic Republic of the Congo.

About the Company

Mukuba is a Canadian mining company focused on the exploration and development of the Northcore Project, which is located in the highly prospective Central African Copperbelt region of Central Zambia. Mukuba holds a 100% interest in the Northcore Project which is licensed for both copper and cobalt and encompasses approximately 2,274 square km of geologically prospective ground in the Domes Region of the Zambian Copperbelt. Geological mapping, soil sampling and investigation of the historical showings as well as ground-truthing of the geological surveying results have confirmed existing historical geological anomalies, and identified new anomalies. Encouraging intersections from numerous boreholes during the Company's 2010 exploration program confirmed the presence of copper mineralization.

Mukuba also has an exclusive Option Agreement between Lukusashi and Lunga Resources Limited ("Lunga"), a wholly owned subsidiary of Mukuba Resources Limited, to purchase an 85% interest in the Nyimba Project license rights (see Press Release dated September 16, 2010) located near the town of Nyimba approximately 300 km east of Lusaka, Zambia. The Nyimba Project is well advanced and substantial exploration work has been completed to date. The polymetallic deposits at Nyimba host zinc, with copper, lead, molybdenum, silver and gold and were systematically explored and partially drilled by Minex (Mindeco), a Zambian government department in the late 1970's and early 1980's and were later acquired by Rio Tinto-Zinc Corporation (RTZ-now Rio Tinto) in 1994.  Mukuba continues to assess historic exploration records which indicate there are five defined areas of mineralization within the 500 square kilometre license area. The most prospective area appears to be Chipirinyuma, where soil sampling by Minex and Rio Tinto defined a surface anomaly measuring 3.5 km by 1.2 km and drilling by Mukuba confirmed base metal mineralization.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future business and planned activities, including its financing plans. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

SOURCE Mukuba Resources Limited

For further information:

Trevor Richardson, President and Chief Executive Officer
Tel: +1 (416) 918 2242; Fax: +1 (416) 603 9200; Email: trichardson@mukubaresources.com

www.mukubaresources.com

Profil de l'entreprise

Mukuba Resources Limited

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.