TORONTO, April 21 /CNW/ - Mukuba Resources Limited (TSX-V:MKU) ("Mukuba"
or the "Company") is pleased to announce that it has signed an Option
and Joint Venture Agreement (the "Agreement") with Benzu Resources
Limited ("Benzu") to explore and develop a copper and base metals
project (the "Project") in the Democratic Republic of the Congo. The
Project tenement is situated to the east in a region known as the
Katanga Copper Belt and is adjacent to the Tenke-Fungurume mine
operated by Freeport McMoRan, Lundin and Gécamines.
The Katanga Copper Belt is estimated to contain nearly 10% of the
world's copper and almost 50% of the world's cobalt resources. This
belt contains over roughly 90 known deposits that vary in size between
approximately 90 Mt and 550 Mt and average around 3.6% Cu. Some of the
resources are amongst the largest and highest grade in the world
including the resources at Tenke-Fungurume reported to be roughly 550
Mt grading 3.5% Cu and 0.27% Co and resources at Kolwezi (KOV)
containing approximately 760 Mt grading 4.4% Cu.
Trevor Richardson, Mukuba's President and Chief Executive Officer
commented, ""We are very pleased to have an opportunity to participate
in what we believe to be a very interesting new exploration project.
Geophysical work carried out by third parties has confirmed anomalies
along the same trend as Tenke-Fungurume. We are looking forward to
combining our regional knowledge with Benzu's in-country experience in
the DRC. This joint venture allows Mukuba to access a new and exciting
project while maintaining its current focus on exploring and developing
Mukuba's Northcore Project and Nyimba Project in neighbouring Zambia."
Under the terms of the Agreement, Mukuba can earn up to a 51% interest
in a company (the "JV Company") to be formed for the purposes of
operating the Joint Venture pursuant to the terms of the Agreement. It
is also required that Mukuba spend US$3 million on exploration and
maintenance of the project within three years of the effective date of
the Agreement and issue one million dollars worth of common shares of
Mukuba to Benzu (to be priced based on Mukuba's next financial raise).
These shares are subject to a statutory hold period expiring four
months and one day following the issuance of the shares. Further
development of the Project would be funded by both parties on a
pro-rata basis. The JV Company will have a 70% interest in the Project
and be the initial operator. Under the terms of the Agreement, the
parties are subject to customary restrictions on transfer of their
interest in the JV Company, including pre-emptive rights on transfers
and other protective provisions. The Board of Directors of the JV
Company will consist of four directors, two of whom shall be nominated
by each of Mukuba and Benzu.
Mr. Chris Meyer, Pr.Sci.Nat., is a "qualified person" as defined by
National Instrument 43-101 overseeing Mukuba's exploration programmes.
Mr. Meyer has not supervised the preparation of the technical
information contained in this press release or verified the data
disclosed, including sampling, analytical, and test data underlying the
information or opinions, which was all obtained from publically
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.
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 results, planned
drilling and future business and planned activities. 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
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: email@example.com
Nisha Hasan, Manager Investor Relations
Tel: +1 (416) 368 4013; Fax: +1 (416) 603 9200; Email: firstname.lastname@example.org