Takara Resources Inc.
TSX VENTURE : TKK

Takara Resources Inc.

July 03, 2008 11:08 ET

Takara Resources Inc.: Preliminary Prospecting Rights Received for South Africa Coal Properties

TORONTO, ONTARIO--(Marketwire - July 3, 2008) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Takara Resources Inc. (TSX VENTURE:TKK) ("Takara") announces that the South African Department of Minerals and Energy has advised that it has accepted for further consideration, Takara's applications for Prospecting Rights on 5 of the 26 properties prospective for coal, all of which are located in a region that is active in coal exploration and production (See press release dated May 21, 2008).

Takara has therefore provided written notice of its election to proceed with the next step in the application process on these 5 properties, as mandated by the South African Department of Minerals and Energy. This includes, but is not limited to, the preparation and submission of an environmental management plan, the submission of amended prospecting work programs, evidence of compliance with the country's black economic empowerment regime, and consultations with affected third parties - all of which are regular course of items of business and which must be completed on or before August 4, 2008.

The application process in South Africa is competitive, and accordingly, there is no assurance that Takara will be granted any of the Prospecting Rights applied for. The Department of Minerals and Energy confirmed that prospecting licences had been previously granted to third parties on 21 of the 26 properties comprising Takara's original applications, and accordingly, did not qualify for acquisition by Takara. In the event that Takara Resources is awarded any of the rights applied for in respect of the 5 properties currently being processed and evaluated by the Department of Minerals and Energy, it shall hold an indirect 50% interest in the permits through a private subsidiary company that is held 50% by Takara and 50% by Aphrodeities Mining (Pty) Limited, a private arms-length South African company engaged in mineral exploration that qualifies as a black economic empowerment company.

In 2007 Takara and Aphrodeities Mining formed a strategic alliance for the purpose of jointly identifying and acquiring mineral rights in South Africa and in the Southern African countries, particularly for coal exploration.

The securities of Takara Resources Inc. have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any U.S. State, and may not be offered or sold in the United States or to any "US Person" (as defined in Regulation S under the Securities Act of 1933) absent registration or an exemption from registration.

Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. All of the forward-looking information contained in this press release is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by Takara, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Takara or its business operations. Takara disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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

Contact Information

  • Takara Resources Inc.
    Jennifer L. Boyle
    President
    (647) 430-0966 (work)
    or
    Takara Resources Inc.
    Pamela Strand
    Chairperson of the board
    (780) 435-0045 (work)