TORONTO, ONTARIO--(Marketwire - Feb. 20, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
Mukuba Resources Limited ("Mukuba") (TSX VENTURE:MKU) announces that Mukuba and Benzu Resources Limited ("Benzu") are continuing to work towards the completion of the transaction contemplated by the acquisition agreement between Mukuba and Benzu dated January 16, 2013 as reported in Mukuba's press release dated January 21, 2013. After discussion and agreement between the parties, Benzu has terminated its option over the Lubudi North and Lubudi East properties in the Democratic Republic of Congo ("DRC"). This termination will allow the combined company to focus its financial and management resources on its flagship asset, the Cominex Project, which is also located in DRC. The termination of the Lubudi concessions does not alter the terms of the transaction. As set out in Mukuba's press release dated January 21, 2013, the parties expect to close the transaction in the second quarter of 2013.
Mukuba is a Canadian exploration and development company primarily focused on copper and other base metal assets in Africa. Mukuba holds a 100% interest in the Northcore Project. The Northcore project covers 2,209 km2 on the Central African Copperbelt and is prospective for copper and cobalt. Mukuba has also signed a joint venture agreement with Benzu Resources Limited to explore and develop the Cominex Project. The Cominex Project, which is approximately 165 km2 in size, is located in the Katanga Copper Belt region in the Democratic Republic of Congo. It is adjacent to the eastern boundary of the Tenke-Fungurume mining concession, which is operated by Freeport and owned by Freeport, Lundin Mining Corporation and Gecamines.
The Katanga Copper Belt Geology
The Katanga Copper Belt is one of greatest metallogenic provinces on earth. The Katanga region hosts some of the richest and largest copper/cobalt deposits in the world: Tenke-Fungurume 550Mt @ 3.5% Cu & 0.27% Co; Kolwezi 760Mt @ 4.4% Cu. The Katanga region is estimated to contain 10% of world's copper resources and 50% of cobalt. There are over 89 known deposits with sizes between 90 and 580Mt @ average 3.6% Cu. Parts of the belt are still unexplored with significant potential for discovery of major new deposits. Individual copper deposits tend to be relatively small, though often high grade, and occurring in geographic clusters.
Completion of the transaction is subject to a number of conditions, including Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Management Information Circular and/or Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of Mukuba should be considered highly speculative.
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future business and planned activities, including matters relating to the Offering. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
This press release does not constitute, and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S. Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of Mukuba. The securities of Mukuba have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.
The TSX Venture Exchange ("TSXV") has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.