We are pleased to announce that the Company has entered into an option agreement to acquire an 80% interest in two copper cobalt concessions in the Democratic Republic of Congo (DRC). The concessions cover an area of approximately 800 square kilometres and are situated in the copper rich Katanga region of the DRC. The remaining 20% will be owned by local Congolese parties as is the practice.
The concessions are in close proximity to the operations of Canadian copper miner First Quantum Minerals and close to the Zambian boarder in south eastern DRC. The concessions are for 15 years with options to extend. Copper grades, yet to be confirmed, show high yields with potential for artisanal mining operations in stage 1 of the project which is expected to produce early cash returns.
We have negotiated a JV arrangement with an operator to fund the project. The payment will be by way of a workout agreement therefore preventing dilution of shareholders stock.
The DRC has experienced heightened interest from large international miners since the recent elections in the country. Phelps Dodge, the world’s larges copper miner, has recently announced massive expansion plans in the DRC. BHP and Rio Tinto have also increased their activities in the country.
The board further announces that it is in advanced stages of discussions with a listed entity to acquire New Millennium. The boards stated aim is to achieve a value of US$0.02 per share for its members. This is the basis of our negotiations and we are confident will be achieved. Acquisition will be by way of a share swap. The prospective suitor intends making application for AIM listing in the New Year.
Due Diligence is expected to be completed within 90 days and settlement 30 to 60 days thereafter. Your board expects that all steps will therefore be completed prior to the northern summer.
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