SOURCE: U Mining Resources Inc.

May 09, 2008 10:42 ET

U Mining Resources Inc. States the Social and Economic Benefits of the BOOT Agreement for the Republic of Guinea

NEW YORK, NY--(Marketwire - May 9, 2008) - U Mining Resources Inc. (PINKSHEETS: UMNG) today announced that the imminent BOOT (Build-Own-Operate-Transfer) Agreement with the Republic of Guinea will provide indispensable social and economic benefits for all parties involved.

Under the terms of the Agreement, U Mining affiliate Comitrag S.A, will be awarded a management contract for the construction and development of numerous infrastructures including the country's first railway and mineral seaport. In addition, Comitrag S.A. will be granted a Mining Concession for the exploration, development and production of Guinea's world-class iron ore resource located in the Simandou Mountain Range.

The implementation of the Agreement will generate significant revenues not only for signatories of the BOOT (Build-Own-Operate-Transfer) Agreement but also for American-based companies that will be contracted to execute the specified infrastructure redevelopment and mining concession projects. Based on the estimated annual export sales of iron ore and iron pallets or nuggets from the mining concession, the Agreement has a gross potential value of $4.5 billion.

On a social level, thousands of skilled jobs will be created to improve the workforce of American and Guinean citizens. Furthermore, an additional project under consideration involves the construction of a hospital in Guinea to enhance the overall health of the population.

The Agreement's infrastructure projects will enable the transport of Guinea's abundant mineral, oil and gas reserves to the seaport while the establishment of a more balanced import/export infrastructure will increase Guinea's prosperity in the 21st century.

Lastly, during the upcoming press releases the Company will compile a breakdown of special contractors necessary to complete this project.

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:
    For additional information or investor relations please call:
    U Mining Resources Inc.
    (516) 762-0154