Balloch Resources Ltd.

September 30, 2005 11:04 ET

Balloch Resources Reaffirms Rights in the Kamoto Joint Venture Assets

TORONTO, ONTARIO--(CCNMatthews - Sept. 30, 2005) -


Balloch Resources Ltd. (TSX VENTURE:BAH) announced today that it has received a copy of a letter from Kumba Resources Limited ("Kumba") in which Kumba alleges that it obtained certain rights from Iscor Ltd. ("Iscor") that relate to the operation of the Kamoto underground mine, including a right of first refusal to the mineral rights in respect of the Kamoto mine and that such rights survive today. Iscor and La Generale des Carrieres et des Mines ("Gecamines"), the State owned and operated mining enterprise of the Democratic Republic of the Congo ("DRC"), entered into a preliminary agreement in 1998 with respect to mining at the Kamoto mine, however, in 2003 Gecamines formally informed Kumba that it was terminating the preliminary agreement, in part due to non-performance by Kumba. The General Manager and Director of Gecamines noted, "Kumba is aware that the final agreement between Gecamines and Iscor has not been signed and, furthermore, that Gecamines did not accept Kumba's request to renegotiate or to modify the draft contract previously discussed with Iscor."

The Joint Venture Agreement between Kinross Forrest Limited ("KFL") and Gecamines, was executed in February 2004 in conformance with the mining code of the DRC and was reviewed and endorsed by all appropriate agencies of the Federal Government of the DRC, including the Ministere des Mines and the Interministerial Committee on Economy and Finances. The transaction was approved by the full Conseil des Ministres on July 15, 2005 and was publicly ratified by presidential decree No. 05070 issued on August 4, 2005.

Balloch believes the assertions of Kumba are spurious and without merit. KFL has indicated to Balloch that it intends to continue with its obligations under the Kamoto joint venture with Gecamines and to actively defend any and all claims should they arise with respect to its rights in the Kamoto mine or any other assets contributed thereto by Gecamines.

Balloch also announced that its proposed private placement of up to 13.6 million subscription receipts, at a price of $1.25 per subscription receipt, for gross proceeds of up to $17 million is now scheduled to close on or about October 17, 2005.

Balloch is a mineral exploration company with a 10% net profits interest in the El Molino mining concession owned by Lumina Copper Corp. The El Molino project lies contiguous to Lumina's El Galeno mining concessions in the Yanacocha district in Peru.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

Contact Information

  • Balloch Resources Ltd.
    Thomas Pladsen
    President and CEO
    (647) 287-3778