| Tue 26 Feb 2008, 17:33 | | TEL - Teal - Teal receives letter from DRC Minister of mines regarding DRC |
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TEL
TEL
TEL - Teal - Teal receives letter from DRC Minister of mines regarding DRC
mining contract review
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
("Teal") or ("the Company")
TEAL RECEIVES LETTER FROM DRC MINISTER OF MINES REGARDING DRC MINING CONTRACT
REVIEW
TEAL Exploration & Mining Incorporated has received its written notification
from the Minister of Mines of the Democratic Republic of the Congo ("DRC")
informing the Company of the outcome of the DRC`s Mining Contracts Review
Commission with respect to TEAL`s Kasonto-Lupoto Mines sprl ("Kalumines")
property.
TEAL, through a fully-owned DRC subsidiary, owns 60%of Kalumines and 40% is
owned by La Generale des Carrieres et des Mines ("Gecamines").
Requests from Government presented in the letter are, translated verbatim, as
follows:
- Kalumines must transmit to the Government the feasibility study for the
project. The feasibility study shall among other things, identify the real
contribution of each of the Parties in order to achieve a fair attribution
of shares;
- Kalumines must present a planning of realization of social actions with a
visible impact; and
- Gecamines must actively participate in the daily management of the company.
Until early 2006, informal miners were active on the Kalumines property. TEAL,
through Kalumines, has since managed the equitable and peaceful removal of these
miners, completed an exploration program at the Lupoto Copper Project area on
the Kalumines property, and started a phase 1 mining operation that is building
up to nearly 25,000 tonnes a year of copper.
The Company is advanced in preparing a pre-feasibility study on the viability of
a larger operation at Kalumines capable of producing a total of over 40,000
tonnes a year copper in cathodes.
The Phase 1 mine, which employs over 600 locally resident people as well as a
number of the previous informal miners, has also permitted the initiation of a
number of social investment projects, including:
1) the provision of water, transport and medical services to a local population
of approximately 10,000;
2) the upgrading and construction of roads; and
3) a contribution to public infrastructure projects in nearby Lubumbashi.
The DRC Government has requested that Gecamines participate actively in the
daily management of Kalumines. TEAL works in close informal and formal
cooperation with Gecamines in managing Kalumines and has recently appointed a
senior Gecamines employee as a full time member of the Kalumines executive team.
In addition, Kalumines has entered into an offtake agreement with Gecamines to
sell a significant portion of Phase 1 mining production to Gecamines on fully
commercial terms.
TEAL will respond shortly to the Government and we are confident that all
challenges that have been posed can be addressed to the satisfaction of all
parties. The Company looks forward to working in full collaboration with
Gecamines and the Government to develop the full potential of the Kalumines
property.
26 February 2008
Sponsor
Investec Bank Limited
For further details contact:
Julian Gwillim
(VP: Investor Relations and Corporate Development)
+27 82 4524 389
julian@tealmining.com
or
Rick Menell
(President and CEO)
+27 82 450 2301
rick@tealmining.com
NOT FOR ONWARD DISSEMINATION IN THE UNITED STATES
Forward-Looking Information: Statements contained in this press release that are
not historical facts are forward-looking statements that involve risks,
uncertainties and other factors that could cause actual results, performance,
prospects and opportunities to differ materially from those expressed or implied
by such forward-looking statements. Although TEAL believes that the assumptions
inherent in the forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date of this press
release. TEAL disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities of TEAL in any jurisdiction.
Date: 26/02/2008 17:33:01 Produced by the JSE SENS Department.
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