TORONTO, Oct. 11 /CNW/ - TEAL Exploration & Mining Incorporated
(TSX-"TL") (JSE-"TEL") ("TEAL" or the "Company") has announced the conclusion
of a partnership with EVI Mining Company Limited ("EVI") in Namibia, and TEAL
has signed a Memorandum of Understanding ("MOU") with Waka Mining and
Petroleum Investment Company s.p.r.l. ("Waka Mining") in the Democratic
Republic of the Congo ("DRC").
The transaction between TEAL and EVI comprises the intended subscription
by EVI to an initial 10% of the share capital in Avdale Namibia (Proprietary)
Limited ("Avdale"), with an option to acquire a further 5% following the
completion of a definitive feasibility study assessing the viability of gold
mining at the Otjikoto Gold Project. The initial subscription price is US$5.5
million, all of which will be used to advance the ongoing exploration drilling
program and to upgrade and expand the inferred mineral resource at Otjikoto,
estimated at 1.76 million ounces of gold, to higher confidence levels. The
subscription funds will also be directed towards completing a pre-feasibility
study on the project.
The option on the additional 5% interest in Avdale will be priced,
according to fair market value principles, at the time of the delivery of the
TEAL and EVI have also signed a corporate opportunity agreement resulting
in a reciprocal arrangement on all future mining and exploration opportunities
NedCapital Namibia (Pty) Limited acted as financial advisor to EVI. Equal
portions of EVI's funding requirement were contributed by NIB Holdings
(Namibia) (Proprietary) Limited, an indirectly owned subsidiary of Nedbank
Group Limited, and the Development Bank of Namibia Limited. EVI's shareholders
have also contributed funding for the subscription price.
The shareholders of EVI are broad-based and include various investment
companies owned by Namibians, including Omankete Investment (Pty) Limited, the
Namibian Mine Workers Investment Company, Pamue Investments Corporation and
the Omusati Women Empowerment Group. EVI's Chairman is Dr Leake S. Hangala. Dr
Hangala is a prominent Namibian businessman who has previously served as
President of the Namibian Chamber of Commerce and was the former Managing
Director of the Namibian Power Corporation.
In the DRC, Waka Mining and TEAL have started negotiations to enable Waka
Mining to acquire a 25% interest in TEAL Metals (DRC) s.p.r.l., the company
that owns the electric-arc furnace that processes material, and produces
`blister' copper, from TEAL's mining operation at Kalumines. Waka Mining's
shareholders are Sébastien Lomena Ibeke (50%) and Mukunta N'soke (50%), both
prominent businessmen in the DRC. The Waka Mining MOU also contemplates the
two companies jointly pursuing opportunities for further investment in mining
endeavours. TEAL and Waka Mining are now working towards final agreements,
which remain subject to various conditions.
TEAL is incorporated under the laws of the Yukon, Canada and its common
shares are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited
("JSE"). The common shares of the Company trade under the symbol "TL" on the
TSX and "TEL" on the JSE.
TEAL is a mineral development and exploration company with development
projects and exploration areas in Namibia, Zambia and the DRC. TEAL has a
portfolio of base and precious metal development projects and complementary
exploration areas, and the Company continues to seek other opportunities,
mainly in southern and central Africa.
TEAL has targeted specific core projects: the Konkola North Copper
Project in Zambia; the Otjikoto Gold Project in Namibia; and the Kalumines
Copper-Cobalt Project in the DRC. TEAL also has interests in various other
mineral licence areas in Zambia and in Namibia on which the Company continues
drilling and other exploration activities.
ADDITIONAL TEAL INFORMATION CAN BE FOUND AT: www.tealmining.com
For further information:
For further information: Julian Gwillim (VP: Investor Relations and
Corporate Development) on +27 82 4524 389 (SA) or firstname.lastname@example.org; or
Rick Menell (President and CEO) on +27 82 450 2301 or email@example.com