Kokanee Minerals Inc.

December 16, 2010 03:35 ET

Kokanee Minerals Inc.: Major Blocks Totalling 504 Km2 Optioned Near Canaco

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - Kokanee Minerals Inc. (TSX VENTURE:KOK) ("Kokanee" or "the Company") reports that in conjunction with its experience and presence in Tanzania the Company has optioned a prospective property in the Handeni area of eastern Tanzania.

The property consists of two Prospecting Licenses (PL) that cover, respectively, 279.16 km2 and 225.34 km2. The property covers the area northwest of the proposed extension of the zone identified on Canaco's Magambazi property. The same rocks that host that zone continue on to the optioned property. Preliminary work has identified quartz veins and artisanal workings on the PLs.

"This is an important step forward for the Company," said Kokanee's President, Abby Farrage. "The Company is very pleased to be acquiring these two significant blocks of land in such a promising area of Tanzania. This establishes Kokanee as a major presence there."

The property under negotiation is being acquired from a private Tanzanian company for payments of $5 million and issuing 2.5 million shares and completing $5 million in exploration over the next 5 years. This transaction is subject to the execution of a final written agreement.

The PLs were won on a closed tender bidding process, and the Offers of Grant for the PLs from the Ministry of Mines have been received. The company has initiated the PL issuance process by accepting the offers and paying the preparation fees.

This release has been reviewed by Glen Macdonald, P.Geo., the designated Qualified Person as defined by National Instrument 43-101.

On behalf of the Board of Directors,

Souhail Abi Farrage, President and Director

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the content of this press release.

Contact Information

  • Kokanee Minerals Inc.
    Souhail Abi Farrage
    President and Director
    360-389-1199 or 360-389-1196