Amana Copper Ltd. Signs Preliminary Agreement for the Baya Cobalt-Copper Project
09 Mai 2014 - 7:31PM
Marketwired
Amana Copper Ltd. Signs Preliminary Agreement for the Baya
Cobalt-Copper Project
MONTREAL, QUEBEC--(Marketwired - May 9, 2014) - Amana Copper
Ltd. (CSE:AMA) ("Amana" or the "Company") is pleased to advise
shareholders that further to the Company's press release dated
April 2, 2014, the Company has signed an agreement ("Preliminary
Agreement") for the acquisition of a 70% interest in the Baya
mining project ("Baya Project"), a producing cobalt-copper project
located in Katanga Province, DRC.
The Baya
Project
The Baya Project is owned and operated by Mahaveer Mining Sprl
("Mahaveer Mining"), a cooperative based in Katanga. Mahaveer
Mining and its members are presently extracting and selling cobalt
ore from the artisanal workings at the Baya Project.
The concession hosting the Baya Project covers an area of 11km²
and is located approximately 25km south of Lubumbashi (accessible
via 20km of paved road and 5km of side road). There are three pits
within the Baya Project, the largest being 200m by 50m. The pits
are aligned NW to SE and are all hosted in weathered Mine Series
rocks.
The secondary cobalt oxide layer lies 5m below the surface and
is exposed by artisanal and mechanized pre-stripping. The layer is
currently mined manually and is 10-15m thick. In-situ grades of 4
to 5% Co are upgraded to 8 to 10% Co by hand sorting and washing,
after which the ore is sold on the open market in Lubumbashi for
processing into cobalt intermediate products including hydroxide,
carbonate and alloys.
During an April 2014 site visit, Amana's geologists confirmed
that current mining has locally exposed an underlying secondary
copper oxide layer. Given the geological setting, as further
material is exposed in the pits, there is good possibility for
primary sulphide mineralization to exist below the oxide layer.
To date there has been no drill testing nor trenching of the
oxide and/or sulphide copper mineralization. Amana intends to
conduct structural, geochemical and geophysical work and to conduct
a drilling program on the Baya Project while concurrently assisting
and improving the artisanal operations so as to increase the volume
and value of materials mined and to increase revenues in the short
term.
The Baya Project is located approximately 25km southeast of the
Kipushi Mine which is majority owned by Ivanhoe Mines. The Kipushi
Mine had past production of 60 million tonnes of ore grading 11% Zn
and 7% Cu and by-product Pb, Cd and Ge. Historical resource
estimates at the Kipushi Mine (above the 1500m level) total
approximately 17 million tonnes averaging 16.7% Zn and 2.3% Cu.
Transaction
Terms
The Preliminary Agreement signed by Amana and Mahaveer Mining
describes the terms and conditions whereby Amana can earn a 70%
interest in the Baya Project once the following milestones have
been met (all US Dollars):
- $500,000 to be paid by Amana to Mahaveer Mining upon Mahaveer
Mining receiving an exploitation license covering the entirety of
the Baya Project ("First Tranche"); and
- $500,000 to be paid by Amana to Mahaveer Mining 45 days after
payment of the First Tranche.
Subject to Amana's ongoing due diligence, the Company seeks to
enter into a definitive agreement ("Definitive Agreement") with
Mahaveer Mining as soon as practicable, however there is no
assurance that a transaction will be completed. Upon completion of
a Definitive Agreement and after securing the necessary funding,
Amana would seek to expedite a drilling campaign to define a
minable cobalt-copper production resource at the Baya Project.
About Amana Copper
Ltd.
Amana's mandate is to acquire and develop copper projects with
near-term visibility to production and cash flows. The Company
leverages its technical and financial expertise to systematically
de-risk and develop its projects.
ON BEHALF OF THE BOARD
Yaron Conforti, Chief Executive Officer and Director
The CSE does not
accept responsibility for the adequacy or accuracy of this
release.
Forward-Looking Information
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address events or
developments that Amana Copper Ltd. (the "Company") expects to
occur, are forward-looking statements. Forward-looking statements
are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results may differ
materially from those in the forward-looking statements. Factors
that could cause the actual results to differ materially from those
in forward-looking statements include regulatory actions, market
prices, exploitation and exploration successes, and continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. Forward-looking statements are
based on the beliefs, estimates and opinions of the Company's
management on the date the statements are made. Except as required
by applicable securities laws, the Company undertakes no obligation
to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors,
should change.
Amana Copper Ltd.Yaron ConfortiCEO(416) 716-8181
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