Kombat Copper Inc.

Kombat Copper Inc.

February 16, 2016 07:00 ET

Kombat Copper Provides Update on Contract Mining Agreement With EBM Mining Namibia

TORONTO, ONTARIO--(Marketwired - Feb. 16, 2016) - Kombat Copper Inc. (TSX VENTURE:KBT) ("Kombat Copper" or the "Company") has signed an addendum to the previously announced Memorandum of Agreement ("MOA") with EBM Mining Namibia (Pty) Ltd. ("EBM") whereby EBM will be Kombat Copper's contractor and will essentially manage the refurbishment of the local infrastructure as well as carry out development and mining of near surface mineralization at the Kombat Mine for a minimum period of three years. Initial production is expected before the end of this year.

Kombat Copper is also discussing several other business opportunities associated with the Kombat Mine property with EBM including the stockpiling and distribution of aggregate stone and sand material, important byproducts of the mining operations to be run by EBM, which could potentially be sold to the local market. Another possible opportunity is the reprocessing of tailings at the Kombat Mine, however, further technical test work and studies will be required to determine if this is economically viable.

Paul Bozoki, President and CEO of Kombat Copper, commented: "Kombat has an extensive database and significant local infrastructure that will allow for a relatively quick start up of mining and milling operations at the Kombat Mine with our contractor EBM Mining Namibia. The management of EBM Mining Namibia has extensive contract mining experience in Southern Africa and the Company feels that this relationship will be financially beneficial to both parties. This work will no doubt have a ripple effect with positive economic implications in the local region. Kombat Copper shares this positive news with its local partners, Epangelo Mining and Havana Investments in contributing to the economy of Namibia."

Commencement of Mining at the Kombat Mine by EBM Mining Namibia

EBM is a newly established company in Namibia with offices in Windhoek. Their management team has extensive experience in small-scale mining operations around Southern Africa. Recent projects operated by EBM South Africa have included the profitable retreatment of base metal tailings. Other mining projects in which EBM's management have been closely associated with include: diamonds, fluorspar, tin and precious metals. EBM has a reputation for running efficient operations on a timely and cost effective basis.

Initial mining by EBM of near surface mineralization will focus on the Kombat East and Kombat Central areas and EBM will also be assessing the Gross Otavi deposit located 12 kilometers to the west of the Kombat Mine where a historic resource had been defined. The Kombat East and Kombat Central areas have shaft and ramp access, which will allow for a relatively quick start up of operations. Under the agreement, the Kombat mill will be refurbished by EBM to produce both lead and copper concentrates. Kombat Copper through its Namibian subsidiary, Manila Investments (Pty) Ltd, will hold any export permits.

Kombat Copper's decision to (i) mine the near surface mineralization on the Kombat East and Kombat Central areas; and (ii) produce any concentrate from such mining and processing is not based on a feasibility study or mineral resource/reserve with demonstrated economic viability. Kombat Copper has decided to put certain areas of the Kombat Mine into production without first establishing mineral resources or mineral reserves, supported by a technical report and/or feasibility study. The Company cautions readers that such production may not be economically feasible and historically such projects have a much higher risk of economic or technical failure.

The MOA is structured so that it does not exploit Kombat Copper's core copper resource base located in the Asis West and Asis Far West zones and does not prohibit Kombat Copper from resuming full mining activities on the remainder of the deposit upon completion of technical and engineering studies with respect to mineral resources. It is being structured to provide up front monthly payments to the Company with an attractive profit sharing component in the event the operation is profitable.

Additional details on the MOA will be provided upon completion of the definitive agreement, which is expected in the near term.

Appointment of Chief Financial Officer

Further to the management changes announced in the press release of February 8th, 2016 Kombat Copper is pleased to announce the appointment of Heidi Gerry as Chief Financial Officer. Ms. Gerry is an accredited finance professional (CPA, CMA) with over fifteen years post designation experience in finance and accounting with controller/manager level experience in reporting, budgeting, forecasting and analysis within small to large-scale public organizations.

Qualified Person

F. W. Nielsen, P.Geo., a director of, and consultant to Kombat Copper, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

About Kombat Copper

Kombat Copper is a publicly traded Canadian exploration and development company with its core operations focused on copper resources in Namibia, one of the world's most prospective copper regions, where it has substantial assets in place with significant upside.

The Company holds an 80% interest in five mining licenses in the Otavi Mountainlands, an area of Namibia particularly known for its high-grade copper deposits. Within these licenses are three past-producing mines including the Company's flagship property, the past-producing Kombat Mine. The Kombat Mine's extensive infrastructure includes an 800 m production shaft which was opened in 2006, two additional recently-operational shafts, three ramp systems, extensive underground workings, mine buildings, a tailings facility, a mill and concentrator. The Kombat Mine opened in 1962 and historically produced 12.46 million tonnes of ore grading 2.62% copper over a period of 45 years. It is linked to vital existing infrastructure, including power, water, roads, and rail with close proximity to the port of Walvis Bay and to one of only five commercial-grade smelters in Africa located in Tsumeb, located 100 road kilometers away from Kombat.

Cautionary Notes

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements. These statements include statements regarding the drill program, possible mineralization and deposits, the anticipated timeline regarding future exploration work, availability of results and production, the Company's expectations regarding mineral resources, the Company's expectations regarding entering into a definitive agreement for production of mineralization from the Kombat Mine and potential development work and the Company's plans for the Kombat Mine, including its dewatering and any financial impact. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.

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