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Kiwara is the beneficial owner of 75% of the issued share capital of Kiwara Resources (Zambia), with The New African Mining Fund owning the 25% balance, having paid an aggregate price of 10,000,000 Rand. NAMF has an option to convert their holding in Kiwara Resources (Zambia) to Kiwara plc shares.
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Kiwara Resources (Zambia) currently holds 75% of the issued share capital of Kalumbila Minerals Limited, which is the joint venture company between Kiwara and the Company’s Zambian partners, LM Engineering Ltd who hold the 25% balance.
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Licence 267 (the ‘‘Licence’’) granted by the Ministry of Mines and Minerals of the Republic of Zambia (the ‘‘Ministry’’), which currently covers an area of 5,500 km² on the periphery of the Kabompo Dome in north western Zambia, was originally issued in September 2005 to LM Engineering Ltd. At the first renewal in September 2007 it was reissued to Kalumbila Minerals Ltd.
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Although the area covered by the Licence has to varying degrees been the subject of previous exploration work, Kiwara should be classed as an early stage exploration company. This is because none of the deposits have been categorised to prevailing internationally recognised standards. There is, however, considerable information available on previous work undertaken by various major mining companies from 1929 through to this decade which has identified nickel, cobalt, copper and uranium.
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The Company is using its existing cash resources, the proceeds of the 2007 Placing and the NAMF Investment to fund the ongoing exploration and drilling programme. The overriding strategy has been to allocate these funds to optimise exploration activity and enable categorisation of the most important deposits within the Licence Area to internationally recognisable standards, in order to prepare the Company for a significant further round of fundraising when deemed necessary by the Company and its advisors.
- The acquisition of additional geological information from historic sources within Zambia and elsewhere to enhance the mineral information data base maintained by the Group and optimise the efficiency of exploration activity.
- Re-validation, drilling and sampling programmes on previously identified targets within the Licence Area.
- Strategically reviewing the results of these initial drilling and sampling programmes in order to focus the Group’s financial resources on exploring the deposit or deposits which the Group considers most readily developable into a commercial proposition or propositions.
- Currently, the Group believes that the specific sites of Kalumbila (nickel, cobalt, copper) and Kawanga (uranium) will be the core projects within the Licence Area for further exploration and that ongoing exploration may be sufficient to enable scoping or prefeasibility studies towards trial mining and processing to start in 2009.
- Intensifying exploration activities at the project or projects selected in order to obtain results capable of supporting the future round of additional fund raising planned.
Investors should note that the Company does not own Exploration Licence 267; it is held by the Company’s majority owned subsidiary, Kalumbila Minerals Limited. |
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