Simberi Mining Corporation

Simberi Mining Corporation

January 22, 2007 09:07 ET

Simberi Provides Update

TORONTO, ONTARIO--(CCNMatthews - Jan. 22, 2007) - Simberi Mining Corporation ("Simberi") (TSX VENTURE:SAU) announced today an update on its progress regarding the completion of a joint venture agreement with Gecamines (the State owned Mining Company in the Democratic Republic of Congo (the "DRC)") relating to the development of the Kakanda Copper/Cobalt project (the "Kakanda Project") in the DRC.

PTM Minerals (Cayman) Ltd. ("PTM Minerals"), a wholly owned subsidiary of Simberi, and Gecamines, agreed in 1997 to complete a joint venture to operate the Kakanda Project. Currently, PTM Minerals and Gecamines each have the right confirmed by the Ministerial Order #0366/Cab.Mines/KKM/MK/MN/97 of May 31, 1997 to participate in the joint venture on a 51% and 49% basis, respectively.

Negotiations have been ongoing between representatives of PTM Minerals and Gecamines to finalize the terms of the joint venture agreement. Amongst other things, PTM Minerals has been negotiating to increase its interest in the joint venture from 51% to 75-80%. Negotiations have been protracted for several reasons including, amongst other things, the recently completed presidential elections in the DRC. Joseph Kabila was formally named President of the DRC on November 15, 2006.

On December 22, 2006, PTM Minerals received a letter form the Minister of Mines in the DRC (the "Minister") addressed to the Vice-President of the Republic in charge of Economic and financial commission, the Vice-Minister of Mines, PTM Minerals and Gecamines, whereby the Minister confirmed the following:

(i) an agreement regarding the tailings resource which constitutes the tailings portion of the Kakanda Project has been reached and a formal and final agreement should have been entered into between PTM Minerals and Gecamines on November 30, 2006.

(ii) PTM Minerals interest in the deposits which constitute the hard rock portion of the Kakanda Project (the "Hardrock Deposits") supersede certain subsequent interests which were granted in the concessions in which the Hardrock Deposits are contained and it is therefore incumbent upon Gecamines to respect, enforce and re-establish the rights of PTM Minerals in the Hardrock Deposits.

(iii) Gecamines should formalize and give effect to the foregoing agreements without further delay.

While discussions on the joint venture have been continuing for some time, management of Simberi and PTM Minerals cannot define the exact timeframe in which the formal joint venture agreement will be signed. However, management of both companies are confident, based on the terms of the original agreement between PTM Minerals and Gecamines, the progress of the negotiations to date and the explicit statements of the Minister, that the final agreement will be signed in the near future.

About Simberi:

Simberi is a junior resource company focused on the exploration and acquisition of developed low cost precious and base metal projects internationally. The company's main exploration project is the Kakanda Project. Simberi is also involved in several joint venture projects in Western Australia.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.

Neither the TSX Venture Exchange, nor any other securities regulatory authority has approved or disapproved of the contents of this news release.

Contact Information

  • Simberi Mining Corporation
    Mike Newbury
    President and CEO
    (416) 603-7200
    (416) 603-9200 (FAX)