TORONTO, ONTARIO--(Marketwired - Jan. 2, 2014) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Kombat Copper Inc. (TSX VENTURE:KBT) ("Kombat" or the "Company") wishes to update stakeholders on its 2014 plans.
Bill Nielsen, President and Chief Executive Officer of Kombat, made these comments on his recent visit to the Kombat mine site: "During the six weeks since my appointment as CEO, Kombat has been busy compiling historical technical data and meeting with local stakeholders in Namibia. Already, we have greatly enhanced our understanding of the project tenements and opportunities and, in doing so, our team has become even more excited about the project's potential. Our goal is to bring the Kombat Mine back into production as soon as possible. To accomplish this goal, in early 2014 we plan to complete a technical report, which will provide a definition of our resource as well as defining a scoping cost and schedule to complete the required work to bring the mine back into commercial production. In addition we will be prioritizing our many exploration targets and conducting further exploration."
Through the November 2013 financing, Kombat secured an important strategic investor in the Forbes & Manhattan and Jilin Jien Global Resources Fund (the "Fund"). The Fund endorses and intends to sponsor Kombat's efforts to put the Kombat Mine back into production and also expand the Company's opportunities in Namibia.
Indeed, Kombat represents a unique investment opportunity as it:
||features a past producing copper mine with existing infrastructure and also exploration upside; and
||is located in an African jurisdiction that has demonstrated its support for mining and foreign investment, which is consistent with the Fund's focus on developing projects in Africa.
Stan Bharti, the Executive Chairman of Forbes & Manhattan, Inc. and a director of the Fund, stated; "We are excited to be involved with Kombat. It is one of the premier resource plays in Southern Africa with excellent exploration upside. Projects like the Kombat mine fit well into the Fund's mandate, which includes re-activating previously operating mines and turning around undervalued assets. Forbes & Manhattan has had significant success re-starting previously operating mines, including, notably, Avion Resources in Mali (sold to Endeavour Mining in 2012) and Desert Sun in Brazil (sold to Yamana in 2006); like Kombat, both Avion and Desert Sun benefited from existing infrastructure, good location and substantial exploration upside. We believe Kombat will be the next success in this line. The Kombat management team and board are outstanding. The new team has excellent exploration and mine development technical skills complemented by board members with extensive knowledge and stakeholder relationships in Namibia."
Kombat is going to complete a follow-on financing to a few key subscribers who wanted to participate in the previous financing round and have approached the Company offering to invest on the same terms.
The financing will offer to place up to 3,000,000 units at a price of $0.10 per unit. Each unit will comprise one common share and one share purchase warrant. The share purchase warrant will entitle the holder to purchase one common share at a price of $0.20 during the three years from the date of issue, subject to an acceleration provision. Kombat intends to use the proceeds to partly fund site exploration and technical studies on its properties and for general corporate purposes.
All securities issued will be subject to a statutory hold period of four months and one day. The financing is subject to a number of conditions, including approval of TSX Venture Exchange.
Grant of Options
Kombat has granted a total of 3,772,500 stock options to various directors, officers and consultants of the Company in accordance with the Company's stock option plan. The options have an exercise price of $0.13 and will expire five years from the date of grant. The options will vest immediately. The grant of options remains subject to approval by the TSX Venture Exchange.
About Kombat Copper Inc.
Kombat Copper (TSX VENTURE:KBT) 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 exploration 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 800m shaft, which was opened in 2006, three recently-operational shafts, ramp systems, extensive underground workings, mine buildings, a tailings facility, a mill and concentrator (replacement value est. +$100MM) all supported by the Company's local town site. The Kombat mine originally opened in 1962 and historically produced approx. 8.7 million tonnes of ore grading 3.1% Cu and 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.
In addition to mining licenses, the Company holds an 80% interest in five Exclusive Prospecting Licenses ("EPL's") covering an area of more than 1500 km2. The EPL's are located also within the copper-rich Otavi Mountainlands and are in close proximity to Tsumeb.
F. W. Nielsen P.Geo, President and CEO of 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.
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 completion of the financing, the proposed use of proceeds and the grant of options. 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.
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 "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.