Superior Mining Announces Agreement On Mangalisa Gold Project
January 10, 2014
Vancouver, British Columbia: Superior Mining International Corporation, (the “Company” or “Superior”) is pleased to announce that it has executed a Sale Agreement with Castlehill Trading CC (“Castlehill”) a private energy Investment Company based in Johannesburg, South Africa for the purchase of Superior’s ownership in Mangalisa.
The Company currently holds (indirectly through subsidiaries) an 87% interest in the Mangalisa project.
The Agreement is for the complete purchase of all shares of Turquoise Moon, a subsidiary of Superior Mining Corp (Africa) that holds the 87% ownership of Mangalisa for a total sum of USD$3 million .
The deal is subject to regulatory and shareholder approval. Once the approval has been given, then Castlehill will pay SUI, the sum of USD$1M.
The final payment of USD$2M, will be paid to Superior once the Department of Mineral Resources (DMR) of South Africa give approval for the transfer of shares to Castlehill.
Ibhubesi Capital (Pty) Ltd ("Ibhubesi"), failed to deliver on the Earn-in Agreement signed in December 2012 with Superior, and since have withdrawn from the Agreement.
The Mangalisa gold uranium project lies over potential eastward extension of the western limb of the Witwatersrand basin that has produced over 1.8 billion ounces of gold over the last 100 years. The prospecting permit of 195.8 km2 is located 25km east of the town of Welkom, Free State Province, Republic of South Africa.
The project southern boundary is approximately 10km north of Harmony’s operating Masimong gold mine that produces approximately 138,000 ounces of gold annually. The project’s strike length is approximately 18km long and remains to be one of the last significantly under explored properties in the Free State goldfield.
Superior began exploring at Mangalisa in 2009 and was successful in intersecting a gold bearing quartz conglomerate typical of the reefs found the Witwatersrand basin. A press release on February 17th, 2009 announced the following significant results:
PG-1 / 12 776.32 - 776.77 (0.45 m) @ 45.8 g/t Au & 3.79 kg/t U
(Inc) 776.56 - 776.77 (0.21 m) @ 91.8 g/t Au & 7.24 kg/t U
PG-1 / 13 776.13 - 776.45 (0.32 m) @ 51.1 g/t Au & 4.27 kg/t U
During 2010, Superior attracted a joint venture partner that was also successful intersecting the reef. A press release on June 30th, 2011 announced the following result:
ERF -7 874.10 - 84.39 (0.29 m) @ 36.6 g/t Au & 0.24 kg/t U
A total of 10 cores from the 2009 and 2010 drill programs were drilled for 8,000m with 39 deflection holes drilled for 2,002m.
Due to limited funds, no further work was carried out.
Superior will begin drilling the Redcastle project in Western Australia when the funds from the Sale are received. Superior has received regulatory approval for a 79 drillhole program (NR 11/25/13) that will target the gold anomalies generated from its soil program completed in December 2012 (NR 30/01/12). Superior will continue to review other opportunities to build on its current exploration portfolio.
Brent Butler, Chief Executive Officer and President, commented: “This is a much needed deal that will inject immediate cash to the Company’s treasury and allow the Company to explore its Redcastle project. Redcastle project’s mineralization is shallow and therefore less expensive to explore than Mangalisa. The Company could not attract investors in the current market to fund the USD$5M phase 3 program and the best alternative was to sell Mangalisa and fund the Company.
The Company will be in a position this year to drill and advance the Redcastle project and seek other projects in the area. This is a huge turning point for the Company and the Board looks forward to a successful 2014”
On behalf of the Board of Directors of Superior Mining International Corporation
Brent Butler President & Chief Executive Officer
For more information please contact:
Superior Mining International Corporation
THIS NEWS RELEASE HAS BEEN PREPARED BY THE MANAGEMENT OF THE COMPANY, WHICH TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.