VANCOUVER, Feb. 4 /CNW/ - Africo Resources Ltd ("Africo") today announced
that, following the conclusion of the Mining Review, it has reached agreement
with La Générale des Carrières et des Mines ("Gécamines") and the Government
of the Democratic Republic of Congo on the amended terms governing the
The Kalukundi property is located in the Katanga Province in the
southeast of the DRC. The mineral rights to Kalukundi are held by Swanmines
Sprl. ("Swanmines") in which Africo holds a 75% interest and Gécamines, the
Africo has concluded and signed the amendment agreement to the "Contrat
De Creation de Societe Swanmines" (the agreement for the creation of
Swanmines). Pursuant to the amendment agreement, Africo is required to pay
Gécamines US$1.6 million per year for a four year period; however the
Company's 75% interest in the project and the 2.5% royalty payable to
Gécamines on Gross Sales will remain unchanged.
Tony Harwood, President and Chief Executive Officer of Africo, commented,
"With the favourable conclusion of the Mining Review we can pursue corporate
financing and development that will benefit all stakeholders. We anticipate
the mining ministry's support as we maintain Kalukundi and its community
programs, pending improved market conditions".
The key details of the amendment agreement are as follows:
Term Original agreement Amended agreement
---- ------------------ -----------------
Cash payments Nil A "pas de porte" (entry premium)
payment of U$6.4 million is payable
to Gécamines in 4 annual
installments of U$1.6 million). An
additional payment will be required
on the basis of U$35 per ton Copper
on reserves exceeding 180,000 tons.
Share Capital U$200,000 To be fixed after taking into
account the actual contribution of
the parties to bankable feasibility
study, and to increase to $2,000,000
payable in cash in the interim.
Note for editors:
Africo Resources Ltd. is a Canadian mineral company engaged in
developing, acquiring and exploring for base metal and gold assets in Africa.
The company's main project is Kalukundi, a development stage copper-cobalt
deposit located in the Katangan Copperbelt in the Democratic Republic of Congo
(DRC). The development team has an operational base in the DRC, with the
company corporate offices located in Vancouver, Canada. The company listed on
the Toronto Stock Exchange in December 2006.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that Africo
expects to occur, are forward looking statements. Forward looking statements
are statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or "should" occur.
Although Africo believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results may differ materially from
those in forward looking statements. Factors that could cause the actual
results to differ materially from those in forward-looking statements include
market prices, exploitation and exploration success, continued availability of
capital and financing and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from
those projected in the forward-looking statements. Forward looking statements
are based on the beliefs, estimates and opinions of Africo's management on the
date the statements are made. Other than as required by law, Africo undertakes
no obligation to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors, should change.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Dr. Tony Harwood, President and Chief Executive
Officer, on Tel: +27(11) 463-0081; Michael O'Brien, Chief Financial Officer on
Tel: (604) 646-3225; Diana Snyder, Investor Relations on Tel: (305) 669-6873;
In South Africa: Charmane Russell on Tel +27(11) 880-3924