Superior Mining International Corporation

Superior Mining International Corporation

December 06, 2006 09:00 ET

Superior Mining International Corporation Announces Co-Investment With Pamodzi Resources Limited in New Black Owned Gold Mining Company, Pamodzi Gold Limited

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - Superior Mining International Corporation, formerly "Superior Mining Corporation", (the "Company" or "Superior Mining")(TSX VENTURE:SUI) and Pamodzi Resources (Proprietary) Limited ("Pamodzi Resources") announce that the South African joint venture company jointly owned by Pamodzi Resources and Superior Mining has changed its name to Middelvlei Gold Investments (Pty) Ltd. ("MGI") (formerly, Pamodzi Gold (Pty) Ltd.). Further, Pamodzi Resources and MGI have invested in a new company called Pamodzi Gold Limited ("Pamodzi Gold") by contributing cash and certain assets and will have a 50.1% combined ownership interest in Pamodzi Gold. This combined ownership will give Pamodzi Gold the highest black owned credentials of its peer group.

Pamodzi Resources owns 50% plus 1 share of MGI and directly and indirectly owns approximately 34% of Pamodzi Gold. Superior Mining directly owns 50% less 1 share of MGI and indirectly owns approximately 17% of Pamodzi Gold. The other major shareholder at 29.8% is Bema Gold Corporation ("Bema"), a company listed on the TSX and the NYSE (BGO) as well as AIM (BAU). Pamodzi Gold will own and operate the Middelvlei property located on the Witwatersrand Basin of South Africa and will also own and operate the Petrex underground and opencast mining operations on the East Rand.

The transaction provides Pamodzi Gold with sufficient black empowerment credentials to qualify for new order mining rights and sets the stage for completing a significant financing and a listing on the Johannesburg Stock Exchange. Mining companies in South Africa are required by law to have 26% empowerment equity participation by 2014.

Pamodzi Gold Chairman Ndaba Ntsele indicates that this will be the first of a number of transactions to be undertaken by Pamodzi Gold which will be aimed at consolidating the junior gold mining sector in South Africa.

Superior Mining and Pamodzi Resources will continue to seek and develop South African gold exploration and mining opportunities through MGI under the terms of its shareholder agreement, as amended.

On behalf of the Board of Superior Mining International Corporation

John Proust, President & CEO

This news release has been prepared by management of the company who takes full responsibility for its contents. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Superior Mining International Corporation
    John Proust
    President & CEO
    (604) 601-2005
    (604) 488-0319 (FAX)