VANCOUVER, Aug. 1 /CNW/ - Kansai Mining Corporation (TSX Venture
Exchange: KAN) the Company is pleased to announce a non-brokered private
placement of 16,000,000 units of the Company (the "Units") at a price of
$0.10 per Unit for gross proceeds to the Company of $1,600,000. Each Unit
consists of one common share of the Company at a price of $0.15 for a period
of two years. Closing of this transaction is subject to regulatory approval.
Proceeds from this financing will be used to help finance a drill program on
the Migori gold project in Kenya, fund operating costs in Venezuela, reduce
debt and working capital.
In Kenya, the Company's wholly owned subsidiary, Mid Migori Mining
Company is gearing up to complete a new diamond-drilling programme to augment
that of mid 2006. A drilling contractor has been secured and will commence
coring as soon as the necessary temporary import permits are received from
Kenyan authorities. The next phase of this programme will comprise up to
6,000 metres of angled drilling, focused on 3 of the main mineralized zones
already delineated, MK Nyanza and Gori Maria, with lesser work at the
Kakula-Kalange-Munyu zone. Other target areas, previously scout drill tested
with initially encouraging results in the general vicinity of the 4 main
zones, such as Macalder, Kunguru, and Bridge and possibly others will form
part of this programme.
After completion of this phase the Company will update the technical
report filed last year. That report stated "From the resynthesisation of all
the data coupled with the 2004 drilling results the Company established that
the 4 main zones of gold mineralization contained as currently explored
33 million tones @ 1.10 g/t Au for 1,172,000 ounces as indicated resources."
The complete technical report is also available on the Company's web site at
www.kansaimining.com. Approximately 600 holes have been drilled comprising
more the 50,000 metres.
This release has been compiled by Mr Bruce Walsham as CEO of Kansai who
is a Qualified Person in terms of National Instrument 43-101.
Kansai Mining Corporation is a mining and exploration company with
interests in Kenya and Venezuela trading on the TSX Venture Exchange under the
All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and
objectives of the Company are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements.
President and Chief Executive Officer
For further information:
For further information: visit our web site at www.kansaimining.com or
contact: B.T. Walsham on +44 1548 843 844, by facsimile on +44 1548 842 378 or
by e-mail, on firstname.lastname@example.org