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MML
MML
MML - Metmar Limited - Metmar moves to invest in DRC and Rwanda tin assets
Metmar Limited
(Formerly Heritage Collection Holdings Limited)
("Metmar" or "the Company")
Incorporated in the Republic of South Africa
Registration Number 1998/007269/06
Share Code: MML
ISIN Code: ZAE000078747
Metmar moves to invest in DRC and Rwanda tin assets
JSE-listed commodities trading company, Metmar Limited today announced that
it had signed agreements facilitating its investment in a newly formed
regional mining company in the eastern DRC and Rwanda, Kivu Resources
Limited. A consortium consisting of EDIN Mining Limited, a mining
investment company domiciled in the British Virgin Islands, Ireland based
Coronation Capital Limited and Metmar Limited will acquire a 50% stake in
Kivu Resources. The consortium has an option to increase its shareholding
in Kivu Resources to 70%.
Kivu Resources, through its wholly owned local companies (Metal Processing
Association SARL in Rwanda, Central African Resources SPRL and Mining and
Processing Congo SPRL in the DRC) will hold a number of assets in the DRC
and Rwanda including a management agreement with SAKIMA, a state owned
company, in the DRC to manage tin and tantalum production from small
scale miners; an option to acquire an 80% shareholding in SAKIMA`s mining
permits; a joint venture with the government of Rwanda on the Gatumba
mining permits; as well as a number of exciting prospecting permits in
the region.
"Historically, the area was a globally important tin and tantalum producer.
However, production was brought to a virtual standstill about 20 years
ago due to low tin prices and political instability in the region",
explained Alan Smith, Chief Executive Officer of EDIN Mining who is the
Chief Executive designate of Kivu Resources. "The consortium brings
significant funding and mining expertise to the venture, essential
elements required to convert these known deposits into modern day
JORC/SAMREC compliant resource and reserve statements during the next 18
months. This is critically important to achieve the full potential of
these assets as we envisage capital-raising on an international stock
exchange within the next 18 months."
Initially the focus will be on the tin, tantalum and tungsten minerals that
are known to exist on the concessions. In addition the areas have
potential for the discovery of gold and diamond deposits, creating
exciting opportunities for diversity in the company going forward.
As regards the global tin market, David Ellwood, Chief Executive Officer of
Metmar Limited commented that "prices are at new highs of over $12 000
per tonne on supply fears, driven primarily by the crisis and future
uncertainty in the Indonesian tin industry. Indonesian supply shortages
are anticipated during 2007 and the region`s future as the second largest
global tin producer hangs in the balance. Our investment in Kivu
Resources is opportune as the DRC gears up to exploit their enormous
mineral wealth and restore the historic production of tin, tantalum and
tungsten in the global market. This investment holds the key to what
should be the "next world class producer" globally for both tin and
tantalum. Not only has Metmar secured the marketing contract for the
metal produced by Kivu Resources but this venture holds the potential to
deliver significant value as production increases in the medium term and
as other potential deposits are explored."
24 January 2007
Bryanston
Sponsor: BDO Questco (Pty) Ltd
Date: 24/01/2007 10:04:01 Produced by the JSE SENS Department.
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