Superior Mining International Executes Final Agreement With Minco Holdings
May 13, 2010
Vancouver, British Columbia: Superior Mining International Corporation, (the “Company” or “Superior”) is pleased to announce that it has now executed the final agreement with Minco Mineral Holdings (Pty) Limited (“Minco”) of Midrand, South Africa and Minco’s nominee Goldcorp Incorporated (“Goldcorp”) a private company incorporated under the laws of Guernsey. Final documents were executed by both parties at the Minco offices in South Africa on April 29, 2010. The TSX Venture Exchange has accepted that agreement for filing pursuant to which Goldcorp can acquire 90% of the Company’s directly held shares in Turquoise Moon Trading 403 (Pty) Limited (“TMT”). TMT holds the exploration rights to the Mangalisa Property located in the eastern part of the Free State Goldfield in South Africa. The Mangalisa Property represents one of the last remaining, high potential, gold and uranium properties within the Witwatersrand Welkom Goldfield. Minco will become the project manager for Mangalisa.
- Superior owns directly 74% of the issued shares of TMT.
- Middelvlei Gold Investments (Proprietary Limited) (“MGI”) holds the remaining 26% of the issued shares of TMT.
- Superior, in turn, owns 50%, less one share of MGI, which represents an effective 13% interest in TMT.
- Superior, then, controls directly and indirectly 87% of TMT.
According to the agreement, Goldcorp has the option to acquire 90% of Superior’s directly controlled shares in TMT by spending USD$10 million on the development of TMT’s Mangalisa Property. Goldcorp has made a firm commitment to expend USD$5,000,000 (the “First Expenditure”) on the Mangalisa Property within 18 months from the closing date. After Minco has made the First Expenditure on the property, it must provide Superior with notice, by way of a one-time election, that it will make a firm commitment to expend an additional USD$5,000,000 on Mangalisa or terminate the letter agreement. If Minco elects not to make the second $5,000,000 expenditure, Minco will have earned no rights to TMT or the Mangalisa property. Superior’s only responsibility, in that event, will be to reimburse Minco for up to $300,000 of previously approved property expenses (not covered by the First Expenditure).
If Minco expends the full $10 million on developing the Mangalisa property:
- Minco will be a 66.6% shareholder of TMT.
- Superior will own 7.4% of TMT directly.
- Superior will still have a 13% indirect interest in TMT indirectly by virtue of its shareholdings in MGI.
- Superior, then, will control, directly and indirectly, 20.4% of TMT.
Superior’s 180 square-kilometre Mangalisa license area is situated approximately 20 km to the east of the township of Welkom, and less than 10 km north of Harmony Gold’s operating Masimong #5
(formerly Erfdeel) gold mine. The contiguous, highly prospective ground was chosen for its potential to host eastward extensions of the Western limb of the Witwatersrand Goldfield in the Welkom District. The lease dimensions contain approximately 18 kilometres of strike potential and approximately 10 kilometres of down-dip potential.
Minco’s First Expenditure exploration plans call for approximately 8 diamond drill holes of up to 1000m deep targeting the Erfenis Reef in the immediate area of the PG-1 discovery hole at Mangalisa. At least one hole will be drilled to a depth of 2,500m to intersect the basal reefs being exploited by Harmony Gold at the nearby Masimong Gold Mine. Results from the first reef intersections are expected to be available in late August or early September 2010, and the program is targeted to be complete by the end of the second quarter 2011. Each drill hole will require about 4 months duration from the drilling of the hole collar to receipt of final assays. Each target hole will consist of a mother hole plus 4 or more deflections to produce multiple reef intersections. After completion the holes will be surveyed and then logged by wireline geophysical logging techniques that include downhole radiometrics.
Rod Tucker,MSc.,PrSciNat, Managing Director of Kernow Exploration of Randburg, a subsidiary of Minco, will be responsible for management and oversight of the drilling program on behalf of Goldcorp. Dr. David Stone, P.Eng. and a director of the Company, is Superior’s Qualified Person as that term is defined in NI 43-101. Dr. Stone has reviewed and approved the contents of this news release.
Minco Mineral Holdings (Pty) Ltd is a privately owned South African registered company, comprising a number of wholly owned subsidiaries, but essentially split into ‘Minco Operations’ and ‘Minco Exploration’. Minco is a well established private company which mines various commodities in South Africa and in Zimbabwe. Their management team has extensive experience in the Witwatersrand Goldfields.
On behalf of the Board of Superior Mining International Corporation,
President & CEO
For more information please contact:
Superior Mining International Corporation
1500-885 West Georgia Street,
Vancouver, B.C., Canada V6C 3E8
Telephone: (604) 601-2005 Fax: (604) 488-0319
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the 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.