| Thu 8 May 2008, 10:00 | | KWR - Kiwara Plc - Kiwara negotiates Iron Ore JV |
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KWR
KWR
KWR - Kiwara Plc - Kiwara negotiates Iron Ore JV
Kiwara plc
Share codes: JSE - KWR
AIM - KIW
ISIN - GB0007702953
(`Kiwara" or the "Company`)
8 May 2008
Kiwara negotiates Iron Ore JV
Kiwara, the Zambian based mining exploration Company, is pleased to announce
that Iron Ore, historically identified in the Kalumbila area now forms part of
its joint venture agreement with LM Engineering Ltd. Kiwara will pay LM
Engineering US$100,000 to add Iron Ore to the joint venture, which currently
includes copper, nickel, cobalt, uranium and platinum group metals (PGMs).
Highlights:
* Iron Ore now integral to the Kalumbila joint venture
* Kalumbila concession is known to host significant areas containing Iron
Ore. Historic results indicate grades in excess of 60% Fe
* The licence area includes large unexplored targets for Iron Ore
Previous work done on the concession relating to Iron Ore
During the early 1970`s, the Yugoslavians targeted what is now the Company`s
Prospecting Licence 267 area in the Kabompo region of north west Zambia as the
source of Iron Ore for their proposed steel mill. This area is known to contain
a large number of discrete Iron Ore outcrops with grades ranging between 57% and
69% Fe.
The original Prospecting Licence 267 issued to LM Engineering included Iron Ore,
in addition to Copper, Nickel, Cobalt, Uranium, PGMs and limestone. However, the
original joint venture between Kiwara and LM Engineering excluded both Iron Ore
and limestone for which LM Engineering retained the option to develop
independently. Kiwara and LM Engineering have entered into an agreement whereby
Iron Ore is now included on the same terms as the original agreement.
In consideration for this inclusion of Iron Ore, Kiwara will pay LM Engineering
Ltd a total of US$100,000 in three instalments payable as follow: US$50,000
immediately, US$25,000 on 31 August 2008 and US$25,000 on 31 March 2009.
The Kalumbila joint venture is currently owned 20% by LM Engineering, 5% by
Kashengeneke Ltd and 75% by Kiwara`s Zambian subsidiary Kiwara Resources
(Zambia) Ltd. Following Kiwara`s expenditure of US$2,200,000 the Company has the
right to an additional 5%.
Colin Bird, Chairman of Kiwara plc, commented: "It is well established that the
region is highly prospective for Iron Ore. The decision by LM Engineering to
include Iron Ore in the JV is a further indication of the strength of team work
and common direction of the partners.
"The inclusion of Iron Ore has the potential to significantly enhance
shareholder value and it is the Company`s intention to commence exploration on
the Iron Ore targets as soon as is reasonably possible".
For further information, please contact:
Kiwara Plc Tel: +44 (0)207 581 4477
Colin Bird, Chairman
Peter Vivian-Neal, Chief Executive Officer Tel: +260 (0) 211 293899
Investec Bank, Johannesburg
Robert Smith Tel: +27 (0) 11 286 7326
Investec Bank (UK) Limited Tel: +44 (0) 20 7597 5000
Gerard Kisbey-Green / Jan Bosch
Bishopsgate Communications Ltd Tel: +44 (0)20 7562 3366
Nick Rome
Sponsor:
Investec Bank Limited
Date: 08/05/2008 10:00:01 Produced by the JSE SENS Department.
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