Superior Mining International Corporation

Superior Mining International Corporation

December 03, 2007 20:47 ET

Superior Mining International Enters Into Second New Zealand Property Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 3, 2007) - Superior Mining International Corporation (the "Company" or "Superior Mining") (TSX VENTURE:SUI) is pleased to announce that it has entered into an agreement with Placer Gold Resources Limited and its shareholders, Barry James MacDonell and Abonus S.A. to grant to the Company an exclusive 36 month option to acquire 100 percent ownership certain mineral permits, totalling 2,906 hectares. The agreement is structured as an option to purchase all of the issued and outstanding shares in the capital of Placer Gold Resources. The authorized share capital of Placer Gold Resources consists of 100 ordinary shares, of which all 100 shares are issued and outstanding. Placer Gold Resources is a New Zealand company registered in New Zealand and Abonus is a Panamanian company registered in the Bahamas.

The acquisition of 2,906 hectares in this agreement and 544.7 hectares as previously announced agreement (dated Oct 23/07) provides Superior Mining with a combined 3,450.7 hectare (approx. 34.5 square kilometres of prospective ground for alluvial gold in the historically productive Ross goldfield in the South Island of New Zealand. Work programs are scheduled to commence in January 2008.

During the 36 month option period the Company will be entitled to manage all of the required exploration and development work on the mineral property. Placer Gold will provide all necessary information and assistance required by Superior Mines to seek and obtain landowner access agreements and resource consents require to commence and conduct exploration and development work on the property. In order to keep the agreement in good standing, the Company shall conduct a minimum of CAD$500,000 of exploration and development work on the property within the first two years of the option period.

On the closing date of the purchase and sale, which falls 14 days after delivery by the Company of the exercise notice and a prefeasibility report on the property to Placer Gold and its shareholders, the shareholders shall deliver to the Company duly executed transfers required to transfer 100 percent beneficial and legal ownership of 100 percent of the Placer Gold shares free and clear of all encumbrances concurrent with the payment of the purchase price.

The Company will pay to the shareholders a total purchase price equal to:

- CAD$3.0 million plus the goods and services tax, if any, where the measured and indicated mineral resource defined under a prefeasibility report contains a minimum of 300,000 ounces of gold on the property plus CAD$10.00 for each additional ounce of gold exceeding 300,000 ounces; or

- If the measured and indicated mineral resource defined under a prefeasibility report contains less than 300,000 ounces of gold on the property, the purchase price shall be based on a formula of CAD$10.00 for each ounce of gold.

The Company has advanced to Placer Gold Resources CAD$10,000 on account of fees to maintain the permits in good standing and Placer Gold has or shall immediately file all documents and pay all necessary fees and costs associated with maintaining the permits in good standing, including payment of all the fees for the services of MacDonnell.

Subject to regulatory approval, the Company has agreed to pay a finder's fee in connection with this option agreement by way of a 200,000 share issuance in the capital of the Company.

Qualified Person

The information in this release has been compiled by Superior's Vice President of Exploration Duncan Greenaway B.Sc. & M.Sc. Geology, M AusIMM. Mr. Greenaway has some 30 years of international exploration and mining experience and has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined in terms of NI 43-101.

On behalf of the Board of Directors of Superior Mining International Corporation

John Proust, President & CEO

This news release has been prepared by management of the company who takes full responsibility for its contents. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Superior Mining International Corporation
    John Proust
    (604) 601-2005
    (604) 488-0319 (FAX)