Simberi Mining Corporation

Simberi Mining Corporation

May 07, 2007 17:21 ET

Simberi Joint Ventures Australian Projects

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - Simberi Mining Corporation ("Simberi") (TSX VENTURE:SAU) announced today that it has entered into a letter of intent and a conditional agreement to acquire interests in certain resource properties located in Australia.

Letter of Intent with Caldera Resources Pty. Ltd. and Ellendale Resources NL

Simberi has entered into a letter of intent with Caldera Resources Pty. Ltd. ("Caldera") and Ellendale Resources NL ("Ellendale") pursuant to which Simberi will have the right to earn a 60% interest in the Mt. Sarah Project (Exploration License EL2958) located in Southern Australia. Each of Caldera and Ellendale own a 50% interest in the Mt. Sarah Project.

The letter of intent provides, amongst other things that, subject to completion of definitive documentation, Simberi will acquire a 60% interest in the Mt. Sarah Project upon the completion of the following:

1. the issuance of an aggregate of 1,500,000 common shares of Simberi to Caldera and Ellendale; and

2. Simberi spending or causing to be expended CDN$1.25 million on exploration over a three year term and commencing a ground gravity survey on the Mt. Sarah Project.

Completion of the transaction contemplated by the letter of intent is subject to a number of conditions including, but not limited to, TSX Venture acceptance and completion of a definitive agreement setting forth the terms and conditions contained in the letter of intent.

Agreement to acquire SA Drilling Pty. Ltd.

Simberi and its wholly owned Australian subsidiary, Novaking Pty. Ltd. ("Novaking"), have entered into a conditional agreement to acquire all of the outstanding shares of SA Drilling Pty. Ltd. ("SA Drilling"). SA Drilling holds a 100% interest in its Lambina Project located in Southern Australia pursuant to Exploration License EL3566.

The agreement provides that Novaking will acquire the outstanding shares of SA Drilling at closing in consideration for the following:

1. at closing the payment of CDN$50,000 and the issuance to the vendor of the SA Drilling shares of 750,000 common shares of Simberi; and

2. payment of a further CDN$50,000 and the issuance to the vendor of an additional 1,000,000 common shares of Simberi on the first anniversary of the date of the closing or upon the completion of a joint venture by Novaking with a third party in respect of the Lambina Project, whichever is earlier.

In addition to the foregoing, the agreement also provides that the vendor of the SA Drilling shares will retain a 2% net profit royalty in the production from the Lambina Project after payment back to Simberi of all exploration and development costs or, in the event of a joint venture with a third party, the royalty will become immediately payable upon commencement of production.

Completion of this transaction is subject to TSX Venture acceptance.

Each of the Mt. Sarah Project and the Lambina Project lie within the structurally significant O'Driscoll G2 Corridor in Southern Australia, which also hosts the significant uranium/gold/copper Olympic Dam deposit. The Olympic Dam deposit contains mineralization in a hematite breccia that exhibits a large magnetic anomaly with an intense and coincident gravity anomaly. Each of the Mt. Sarah Project and the Lambina Project contain targets that based on regional surveys exhibit similar geophysical characteristics to Olympic Dam. Simberi plans detailed ground follow-up geophysics on the properties to identify and delineate potential drill targets on the properties.

Mike Newbury P. Eng. is a qualified person as identified by NI 43-101, and has reviewed and verified the technical content of this press release.

About Simberi:

Simberi is a junior resource company focused on the exploration and acquisition of developed low cost precious and base metal projects internationally. The company has an interest in the Kakanda copper/cobalt project located in the African copper belt in the Democratic Republic of the Congo. Simberi is also involved in several base metal joint venture exploration projects in Australia.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.

Neither the TSX Venture Exchange, nor any other securities regulatory authority has approved or disapproved of the contents of this news release.

Contact Information

  • Simberi Mining Corporation
    Mike Newbury
    President and CEO
    (416) 603-7200
    (416) 603-9200 (FAX)