TORONTO, ONTARIO--(Marketwire - July 26, 2012) - Cadman Resources Inc. (CNSX:CUZ) (the "Company") is pleased to announce that the Company has concluded negotiations with Shenba Resources Holdings Limited ("Shenba"), and entered into a letter of intent (the "LOI") to acquire 65 per cent of the Mbozi Copper project located in the United Republic of Tanzania. Shenba is a Hong Kong based mineral development company that is active in the mineral rich Mbeya region of south western Tanzania. Mbeya is a fast developing mining region where numerous artisan mining operations produce a wide variety of minerals including gold and copper. Management sees great opportunity for exploration and development in this mineral rich, yet underdeveloped part of Africa. Eastern Africa on the whole is a very mineral rich area. Zambia, directly across the border from Mbeya is the largest producer of copper in Africa and the eighth largest producer in the world.
The consideration for granting 65% interest of the Mbozi option, the Company will incur cumulative exploration expenditures of US$3,000,000, pay to the optionors the sum of US$200,000 cash in property payments and issue a total of 5,000,000 common shares and 5,000,000 warrants exercisable at $0.25 of the company to the optionors, all over a three-year period commencing upon receipt of approval by the CNSX.
"Cadman's vision is to develop and expand past producing mines; we look for ore where it's already been found. Mbozi certainly fits into that profile as the project area and surrounding lands have been worked for decades by artisanal miners who have just scratched the surface," say Derek Bartlett, CEO of Cadman.
About Mbeya Copper Project
The Mbozi Copper Project is located in the Mbozi District of the Mbeya Region in the United Republic of Tanzania. Mbozi District is the most western part of Tanzania and is bordered to the South by Zambia. Mbeya Region has been underexplored using modern technologies in comparison to the northern and eastern parts of Tanzania, but it is now a fast developing mining region with numerous artisan mining operations. These mining operations have produced a wide variety of minerals including gold but the major focus is copper ore shipped to China for processing.
The Mbozi project consists of two adjacent concessions totaling 232.86 km2. Historic sampling and more recent Shenba sampling has yielded samples showing in excess of 50% (per cent) Cu.
The above information is provided for reference purposes only. The mentioned results do not conform to the requirements of National Instrument 43-101 and should not be relied upon for any other purposes. The Company cautions that no qualified person has yet done sufficient work on the Mbozi Copper occurrences to confirm the above noted assays. This information should not be relied upon on as an indicator of actual resource or reserve estimates, and should be construed only as conceptual in nature.
About Ally M. Kitule and Associates
Mr. Ally M. Kitule and his associates are Tanzanian citizens actively involved in trading commodities between Tanzania and China. Having firsthand knowledge of local artisan mining operations that have produced high grade copper bearing ore lumps, Mr. Kitule and his associates formed a partnership agreement and have taken title on Prospect Licenses for 2 properties they have staked in order to sell high grade ore to Chinese interests.
About Shenba Resources Holdings Limited
Shenba is a BVI incorporated company with an office in Hong Kong. Its major shareholders are based in China. The company's focus is in mining resource investments and commodity trading specializing in importing goods into China.
About Cadman Resources Inc.
Cadman is a Canadian based junior mining exploration company with an option to earn 55-per-cent interest of the Golden Star property in Ontario Canada. The Company is also actively pursuing other significant mining opportunities worldwide.
On behalf of Management
CADMAN RESOURCES INC.
Derek Bartlett, CEO & Director
The Company's filings are available for review at www.sedar.com and http://www.cnsx.ca/.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
The CNSX has not reviewed, approved or disapproved the content of this press release.