| Fri 12 Oct 2007, 8:00 | | TEL - TEAL - Concludes local partnership in Namibi |
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TEL
TEL
TEL - TEAL - Concludes local partnership in Namibia and signs MOU in the Drc
TEAL Exploration & Mining Inc.
Corporate Access Number: 31403
ISIN: CA8781511099
(Incorporated in Yukon, Canada on 1 June 2005)
SA Company Registration Number: 2006/003229/10
JSE share code: TEL
JSE short name: TEAL
For release:
Friday, October 12, 2007
TEAL CONCLUDES LOCAL PARTNERSHIP IN NAMIBIA AND SIGNS MOU IN THE DRC
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL" or the
"Company") has announced the conclusion of a partnership with EVI Mining Company
Limited ("EVI") in Namibia, and TEAL has signed a Memorandum of Understanding
("MOU") with Waka Mining and Petroleum Investment Company s.p.r.l. ("Waka
Mining") in the Democratic Republic of the Congo ("DRC").
The transaction between TEAL and EVI comprises the intended subscription by EVI
to an initial 10% of the share capital in Avdale Namibia (Proprietary) Limited
("Avdale"), with an option to acquire a further 5% following the completion of a
definitive feasibility study assessing the viability of gold mining at the
Otjikoto Gold Project. The initial subscription price is US$5.5 million, all of
which will be used to advance the ongoing exploration drilling program and to
upgrade and expand the inferred mineral resource at Otjikoto, estimated at 1.76
million ounces of gold, to higher confidence levels. The subscription funds will
also be directed towards completing a pre-feasibility study on the project.
The option on the additional 5% interest in Avdale will be priced, according to
fair market value principles, at the time of the delivery of the feasibility
study.
TEAL and EVI have also signed a corporate opportunity agreement resulting in a
reciprocal arrangement on all future mining and exploration opportunities in
Namibia.
NedCapital Namibia (Pty) Limited acted as financial advisor to EVI. Equal
portions of EVI`s funding requirement were contributed by NIB Holdings (Namibia)
(Proprietary) Limited, an indirectly owned subsidiary of Nedbank Group Limited,
and the Development Bank of Namibia Limited. EVI`s shareholders have also
contributed funding for the subscription price.
The shareholders of EVI are broad-based and include various investment companies
owned by Namibians, including Omankete Investment (Pty) Limited, the Namibian
Mine Workers Investment Company, Pamue Investments Corporation and the Omusati
Women Empowerment Group. EVI`s Chairman is Dr Leake S. Hangala. Dr Hangala is
a prominent Namibian businessman who has previously served as President of the
Namibian Chamber of Commerce and was the former Managing Director of the
Namibian Power Corporation.
In the DRC, Waka Mining and TEAL have started negotiations to enable Waka Mining
to acquire a 25% interest in TEAL Metals (DRC) s.p.r.l., the company that owns
the electric-arc furnace that processes material, and produces `blister` copper,
from TEAL`s mining operation at Kalumines. Waka Mining`s shareholders are
Sebastien Lomena Ibeke (50%) and Mukunta N`soke (50%), both prominent
businessmen in the DRC. The Waka Mining MOU also contemplates the two companies
jointly pursuing opportunities for further investment in mining endeavours.
TEAL and Waka Mining are now working towards final agreements, which remain
subject to various conditions.
ends
NOTES:
TEAL is incorporated under the laws of the Yukon, Canada and its common shares
are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited ("JSE").
The common shares of the Company trade under the symbol "TL" on the TSX and
"TEL" on the JSE.
TEAL is a mineral development and exploration company with development projects
and exploration areas in Namibia, Zambia and the DRC. TEAL has a portfolio of
base and precious metal development projects and complementary exploration
areas, and the Company continues to seek other opportunities, mainly in southern
and central Africa.
TEAL has targeted specific core projects: the Konkola North Copper Project in
Zambia; the Otjikoto Gold Project in Namibia; and the Kalumines Copper-Cobalt
Project in the DRC. TEAL also has interests in various other mineral licence
areas in Zambia and in Namibia on which the Company continues drilling and other
exploration activities.
ADDITIONAL TEAL INFORMATION CAN BE FOUND AT: www.tealmining.com
For further details contact:
Julian Gwillim (VP: Investor Relations and Corporate Development) on +27 82 4524
389 (SA); or julian@tealmining.com
or
Rick Menell (President and CEO) on +27 82 450 2301; or rick@tealmining.com
Sponsor: Investec Bank
Date: 12/10/2007 08:00:03 Produced by the JSE SENS Department.
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