Tiomin expands edits land position through the acquisition of the Puka Sur

Tag : Non-ferrous Metal

Under the terms of the MOU, Jinchuan shall provide or arrange oncommercially acceptable terms the balance of the financing requiredby TKL for the construction, development and daily operation ofKwale. On commencement of commercial production all net cash flowgenerated by Kwale will be used to repay the outstanding loansprovided by Jinchuan. Thereafter net free cash flow will bedistributed pro-rata to the shareholders of TKL. Jinchuan will beresponsible for the construction, development and management ofKwale and the management of TKL.
In order for Closing to take place on November 1, 2008, certainconditions must be met, including board approval for bothcompanies, a formal valuation of Tiomin's interest in TKL,regulatory approval, Barrick's consent through its subsidiary,Pangea Goldfields, on its 'right of first refusal' on any sale ofinterest in the four properties held in TKL, the completion ofoutstanding items by the GoK, definitive agreements between Tiomin,TKL and Jinchuan and Tiomin shareholders' approval.
About Jinchuan Group Limited
Jinchuan is a major integrated non-ferrous metallurgical companyengaged in mining, concentrating, smelting and chemical engineeringthat produces nickel, copper, cobalt, rare and precious metals andalso some chemical products such as sulfuric acid, caustic soda,liquid chlorine, hydrochloric acid and sodium sulfite, togetherwith some further processed nonferrous metals products. Jinchuan'soutput of nickel and platinum group metals respectively accountsfor more than 90% of China's total production.
About Tiomin Resources Inc.
Tiomin is maximizing shareholder value by the acquisition,exploration and development of industrial mineral, gold and basemetal projects. Jinchuan, one of China's largest mining companies,owns 20% of Tiomin.
Tiomin has three main assets: approximately $24.0 million of cash,a 49% interest in the Pukaqaqa copper and gold project in Peru anda 100% interest in the Kwale titanium project in Kenya. Tiomin'sshare price currently only reflects the value of its cash positionand it receives no value for its other assets in Peru or Kenya.Tiomin is also working to optimize the value of its shares byacquiring, or investing in, other prospective explorationproperties.
Tiomin and its 51% partner at Pukaqaqa, Compania Minera Milpo S.A.('Milpo'), have an existing NI 43-101 measured and indicated copperresource and scoping study at Pukaqaqa, and also recently expandedits land position through the acquisition of the Puka Sur property.Tiomin and Milpo plan an extensive exploration program in 2008/9aimed at increasing the resources.
In Kenya, TKL's obligations under Kwale's mining lease remainsubject to Force Majeure while the GoK completes the remainingconditions that will be required by lenders to finance Kwale.Tiomin is confident that with Jinchuan's acquisition of a 70%interest in TKL, the Kwale project will be developed and that theGoK will complete the remaining items to ensure the constructionand development of the project.
Tiomin also owns a 17.9% interest in Kivu Gold Corporation, acompany focused on mineral exploration in sub-Saharan Africa.
Tiomin also expects to complete by October 1, 2008 its previouslyannounced transaction with Radiant Resources Inc. ('Radiant')(CDNX: RRS.V - News ). Radiant is a base metals and gold exploration company focused onthe Altay Shan mineral belt in Xinjiang Province in northwesternChina. Radiant is in partnership with Baodi, which is owned by theprovincial government. Radiant and Baodi own a joint venturecompany, Xinjiang Pacific Resources ('XPR'), which owns theportfolio of exploration properties that are of interest to Tiomin.Radiant has satisfied the contractual requirements to increase itsownership of XPR from 51% to 70% and is in the process ofregistering this change. Radiant has a right to earn up to 90% ofXPR.
To find out more about Tiomin Resources Inc. and Jinchuan GroupLtd., please visit the company websites at www.tiomin.com and www.jnmc.com .
Certain of the information contained in this news releaseconstitute 'forward-looking statements' within the meaning of thePrivate Securities Litigation Reform Act of 1995. Suchforward-looking statements, including but not limited to thoserespect to the prices of metals and minerals, estimated futureproduction, estimated costs of future production and the Company'ssales policy, involve known and unknown risks, uncertainties andother factors which may cause the actual results, performance orachievements of the Company to be materially different from anyforecast results, performance or achievements expressed or impliedby such forward-looking statements. Such factors include, amongothers, the actual prices of copper and gold, the actual results ofcurrent exploration, development and mining activities, changes inproject parameters as plans continue to be evaluated, as well asthose factors disclosed in the Company's documents filed from timeto time with the Ontario Securities Commission.