3rd March 2008
For immediate release
COPPER RESOURCES CORPORATION
Copper Resources Corporation (AIM-London: CRC.L) ("CRC" or the "Company")
announces that its 75% subsidiary company, Miniere De Musoshi & Kinsenda Sarl
("MMK"), has received a letter from the Minister of Mines of the Democratic
Republic of the Congo ("DRC") notifying MMK of the results of the Review
Commission's re-visitation of the MMK Mining Convention relating to the
licences for the Kinsenda and Musoshi mines and the Lubembe property.
The letter from the Minister proposes that discussions be held with the
objective of clarifying and evaluating the respective contributions in the MMK
joint venture ("the Joint Venture"), in which the Company holds 75%, Metorex
Limited holds 5%, and Sodimico holds 20%. In this regard, an independent
feasibility study had already been prepared to substantiate the equity split in
this Joint Venture agreement. The Ministry have now requested to see the
feasibility study as well as the background data regarding the contribution
made at the time of the incorporation of MMK.
The Government has also submitted that the potential exists for the return of
the Musoshi mine to Sodimico. The letter also states that under a Ministerial
decree issued in 2007, the Joint Venture should potentially have observed a
stand-still on concluding any transactions.
The Joint Venture was initially formed in 2005 between the Forrest Group and
Sodimico and was formally approved by Presidential Decree, being signed by
President Joseph Kabila. Under the terms of the agreement, Sodimico introduced
the mining and exploration prospects to the Joint Venture whilst the Forrest
Group undertook to provide financial support, including through financing the
preliminary feasibility study.
MMK has also been requested to submit to the Government the plan for all social
programs that will have a visible impact. MMK/CRC has financed, developed and
continues to maintain numerous social and infrastructure projects including,
amongst others, medical clinics and equipment, schools and fresh water wells.
In addition, MMK/CRC has rehabilitated the electrical infrastructure for the
benefit of the local community and has employed approximately 1,000 former
Sodimico employees (who had been unpaid for years), where only 500 employees
were actually required for the continuing operations.
The letter from the Minister requested that MMK respond to the Government's
letter by 27th February 2008. However an extension to this deadline was
subsequently granted to 5th March 2008. MMK intends to submit a response to the
Minister shortly, and fully intends to hold discussions with the Ministry with
the help of its partners, the Forrest Group and Sodimico.
Enquiries:
Copper Resources Nabarro Wells & Fox-Davies Capital GTH
Corporation Co. Limited Limited
Communications
Jeff Carel Hugh Oram Richard Hail Toby Hall
Company Secretary
+27 +44 (0) +44 (0) +44 (0)
11 803 1073 20 7710 7400 207 936 5200 20 7153 8035
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