Midex Gold Corp.
OTC Bulletin Board : MXGD

September 03, 2009 16:19 ET

Midex Gold Corp.: Russian Mining Company, Petra Diamonds Buys De Beers' 75% Equity Stake in the Williamson (Mwadui) Mine, One of Africa's Top Diamond Producing Mines

DAR ES SALAAM, TANZANIA--(Marketwire - Sept. 3, 2009) - Midex Gold Corp. (OTCBB:MXGD) (www.midexgold.com), Morgan Magella, president of Midex Gold stated that, "The sale of Africa's most prolific diamond producing mine to Petra Diamonds Limited further reinforces our belief that our 46 square kilometer Magembe diamond property that is directly adjacent to the eastern, northern, and western boundaries of the Williamson (Mwadui) Mine has the potential to become a world-class diamond mine."

De Beers entered into a contract to sell its 75 percent equity stake and all of its claims over Williamson Diamonds Limited (WDL) to Petra Diamonds, De Beers' shareholding in WDL is held through its wholly-owned subsidiary, Willcroft Company Limited. The announcement making this decision official was made jointly by the Government of the Tanzania, De Beers and Petra Diamonds Limited.

Johan Dippenaar, Petra's CEO stated in part, "Petra already owns three of the world's major diamond mines, Cullinan, Koffiefontein and...Kimberley Underground. Williamson will add a fourth world class mine to our portfolio, with the potential to deliver considerable value to our shareholders. This acquisition also marks Petra's entry into Tanzania, further diversifying the Group's geographical spread across Africa."

Commenting on the sale, the Honourable Minister of Energy and Minerals, William Ngeleja, said, "The Government of the United Republic of Tanzania is pleased to welcome Petra to Tanzania as its new partner in Williamson Diamonds Limited. This is an exciting opportunity to breathe new life into Williamson Mine and Tanzania's diamond mining sector."

De Beers in a joint venture with the Government of Tanzania has been operating the open-pit Williamson Mine at Mwadui since 1958. The transaction is seen as a benefit for the Williamson diamond mine, with Petra prepared to exploit the considerable opportunity the Mwadui deposit represents which is the world's largest kimberlite mine currently in production at 146 hectares.


Petra Diamonds is a rapidly growing diamond mining group, focused on the African continent. A number of recent acquisitions - including the Williamson Mine located directly adjacent to Midex's Magembe property - have established Petra as one of the world's largest independent diamond groups by resources, with a total resource base of 265 million carats, worth US$27.3 billion, based on their September 2008 Resource Statement.


Midex Gold is positioned to take advantage of Tanzania's rich mineral resources by developing a select portfolio of near-term gold and diamond production projects. With the company's network of strategic relationships with senior mining professionals and government officials in Tanzania, it is poised to identify key mining concession targets that are ready to be developed.


This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control and actual results may differ materially from the expected results. The Company does not expect to update forward-looking statements continually as conditions change. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's quarterly filings with the SEC and other periodic filings.

No Exchange has either approved or disapproved of the information contained herein.

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