SOURCE: U Mining Resources Inc

January 28, 2008 08:30 ET

U Mining Resources Inc. Announces Further Details on BOOT (BUILD - OWN - OPERATE - TRANSFER) Agreement With Comitrag in West Africa

Copy of Final Agreement Sent to Mining Minister in Preparation for Official Signing Ceremony Scheduled for Mid-February in West Africa

NEW YORK, NY--(Marketwire - January 28, 2008) - U Mining Resources Inc. (PINKSHEETS: UMNG) today announced further details and updated information on the signing of the BOOT (Build-Own-Operate-Transfer) Agreement with Comitrag. Comitrag S.A. is the regional contractor selected by U Mining to head up and oversee development operations in West Africa.

U Mining CEO Jean Michel de Montigny stated the following: "I am very pleased that our team was able to finalize this milestone agreement, as it represented a significant challenge for all of the parties involved. I would like to take this opportunity to explain the bases of this long term agreement."

BOOT Agreement: The West African Republic State, in its desire to promote the exploration and development of the mineral resources located in the Republic, while conforming to basic principles of natural resources development, has decided that any such exploitation shall be performed by outside or internationally based, private Companies in the framework of BOOT.

The State's objectives for the priority given to the assignment of those territories with iron ore resources are as follows:

a) Firstly, the State wishes to enhance social and economic development objectives in order to promote the well-being of its citizens;

b) Within the framework of existing mining policies, the State wants to promote the exploration and development of its mineral resources which is the primary subject of the BOOT convention, and;

c) The State desires to create economic opportunities through this exploration and development, thereby creating employment opportunities for the nation's citizens.

Therefore, it is the State's wish that private investors implement the necessary initiatives to build and operate a railroad infrastructure and port project in order to fully explore and develop the iron ore resources within the framework of existing law on BOOT throughout all phases of the project, from groundbreaking through to the actual export of iron ore pallets and/or nuggets.

Comitrag / U Mining: In November 2007, during a meeting in New York City, the President of Comitrag S.A. and the CEO of U Mining met with the Prime Minister of this emerging West African Nation. The purpose of the meeting was to discuss the bases of the BOOT agreement, as well as the specific location of the country's iron ore mining concession. Following this meeting, the President of Comitrag returned to West Africa to further develop the terms of the agreement with the Prime Minister and the Minister of Export, Transportation and Mining. Consequently, U Mining finalized its joint venture agreement with Comitrag in January, and the two parties identified the key sectors and activities that U Mining desires to participate in.

Disclosure and Timeframes: U Mining CEO Jean Michel de Montigny added the following: "I am taking full responsibility for maintaining the confidentiality of the name and location of this country, and I would like to again apologize to all of our valued shareholders for these special preventive measures. Considering the significant monetary value of this contract, and how important it is to the welfare of both parties including U Mining's prospects for growth in 2008, it is of utmost importance that we take all necessary precautions to prevent competing organizations from compromising the contract we have in place. Regarding the date for signing the binding agreement in West Africa, due to unforeseen circumstances and delays, the official signing ceremony involving the CEO of U Mining and the nation's government authorities has been rescheduled to mid-February."

To be added on the Company's mailing list, please speak with the Investor Communications Representatives at U Mining's Investor Relations firm Equiti-trend Advisors. Reps are available from 9:30 a.m. to 5:30 p.m. EST daily by calling (800) 953-3350. Interested investors are also encouraged to visit the Company's corporate website regularly for updates at www.umining.com.

Forward-Looking Statements

Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that the company's stock is not currently registered with the Securities and Exchange Commission.

Contact Information

  • Contact:

    Equiti-trend Advisors
    (800) 953-3350 U.S. & Canada
    (858) 436-3350 Local