Simberi Mining Corporation

Simberi Mining Corporation

November 21, 2007 09:00 ET

Update on Kakanda Property in the Democratic Republic of the Congo

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2007) - Simberi Mining Corporation ("Simberi")(TSX VENTURE:SAU), announces that the review Commission of the Democratic Republic of the Congo ("DRC") have acknowledged Simberi's rights to the concessions in the Kakanda joint venture with Gecomines (the DRC State Mining Company), has been encouraged to meet with Simberi as soon as possible to complete a new joint venture agreement for the development of the tailings and Kakanda North and Kakanda South.

A Commission to review mining contracts was created by the government of the DRC on April 20, 2007. The commission commenced work in mid-June 2007 and as international press reports based on early drafts of the report indicate the commission finished detailed technical and legal study of over 60 mining contracts and determined the majority of the contracts needed to be renegotiated or cancelled. These contract reviews included firms such as Boss Mining, CAMEC, Freeport McMoRan Copper, BHP Billiton and Nilanor.

The Commission was closely monitored by a world wide coalition of non-governmental organizations and various governments and its final drafts coincided with a visit in late October by President Kabila to Washington to meet with President Bush seeking US assistance and support. It also coincided with work by the Carter Foundation.

Simberi is active in the DRC continuing the work begun in 1996 and reaffirmed by various mining ministers and governments since that time and has the US supporting its claims and promoting the final joint venture development contract with Gecomines; The Commission timing was relevant to the Company because with the new mining registry system there was confusion with regard to our hard rock concessions which appeared to overlap with a claim by CAMEC and Boss Mining for concession C19 and Exploration permit 469.

The confusion made it difficult for the central registry to transfer clear title for the hard rock deposits to Gecomines for the creation of the joint venture between Gecomine and Simberi. There was no such confusion with regard to the tailings deposit and under the new registry system Simberi's joint venture rights have been confirmed.

The Commission met with Simberi in the third quarter in order to make a recommendation with regard to the hard rock concession dispute. The Commission recognized Simberi and prior organizations affiliated with Simberi's wholly owned subsidiary PTM have invested in excess of $10 million in exploration and development of the properties and fulfilled their contractual obligations reflected in the mining study resulting in a feasibility study in October 1997 and the more recent 43-101 compliant technical report.

In early November 2007, the DRC government issued a decree annulling all CAMEC and Boss Mining contracts including those over the disputed concessions.

The government cited Boss Mining in particular violated a DRC Presidential decree dated June 18th 2001, protecting our rights over our concessions, in both the tailings, Kakanda north and Kakanda south. This has now created clear titles under the new registry for the tailings and the hard rock properties and will allow Gecomines to finalize the terms for a joint venture between PTM Congo and Gecomines, the State Mining Company for the final development of the properties.

Simberi's technical, legal, domestic and international government affairs consultants have worked hard with management to achieve this successful result in a competitive and complicated environment. Simberi is presently working with Gecomine's lawyers to complete the final joint venture agreements. The finalization of the Commission's work will now allow Amari, Simberi's joint venture partner, to proceed with completion of its due diligence (please refer to Press Release dated November 19, 2007 for further details).

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's main exploration project is the Kakanda Project copper/cobalt project in that Democratic Republic of the Congo. On site exploration of this project is being managed by Amari Holdings Simberi's joint venture partner. Simberi is also involved in several joint venture projects in Australia; Lambina, Mt. Sarah and Mt. Narlee primarily in the G-2 corridor within the Gawler Craton in South Australia that is the host for the copper/uranium/gold Olympic Dam type deposits.

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 & Chief Executive Officer
    (416) 603-7200
    (416) 603-9200 (FAX)