DRC Government agreement

Photo: Africa on the Globe

Source: Proactive Investors ,http://www.proactiveinvestors.com.au

Tiger Resources (ASX/TSX:TGS) is a copper/cobalt exploration company

with excellent growth potential as it makes the transition from explorer to producer.

Tiger has built up a highly-rated portfolio of properties, all strategically located on

the world renowned Katanga Copperbelt in the Democratic Republic of the Congo (DRC).

The Company has completed the first feasibility study at its flagship Kipoi Project.

The study is based on the exceptionally high grade Kipoi Central deposit

where drill intersections of 104.5m @ 8.7% Cu, 109m @ 7.6% Cu and

118.6m @ 7.0% Cu have been reported.

  

DRC Government agreement provides boost

to Tiger Resource's Kipoi Project

  

Emerging copper miner Tiger Resources (ASX/TSX:TGS) has announced that

a revised agreement has been signed with La Générale des Carrières et des Mines

("Gécamines") in respect of the contractual arrangements governing

the Kipoi Project in the DRC.

In 2007 the Government of the Democratic Republic of Congo ("DRC") established

a commission to review the DRC State's interest in more than 60 joint venture contracts

governing mining projects.

The review by the Government of the DRC of the contractual arrangements

governing the Kipoi Project is now complete.

The rights to the Kipoi Project are held by SEK sprl ("SEK"). SEK is a DRC registered

company jointly owned by Congo Minerals sprl ("Comin", 60%) and Gécamines (40%).

Tiger is acquiring a majority interest in the Kipoi Project pursuant

to an agreement with the shareholders of Comin.

The revised agreement with Gécamines upholds the security of title of

the Kipoi Project and confirms the interests of the parties in SEK,

which remain unchanged.

Principal amendments to the original contractual arrangements

governing the Kipoi Project are as follows:

• Royalty - Gécamines shall be entitled to a 2.5% royalty

on gross sales (previously Gécamines was entitled

to a 4.5% royalty on gross sales).

• Cash Payments - Payments are to be made

by Comin to Gécamines as follows

(previously no such cash payments were payable to Gécamines):

- US$3 million upon the revised agreement coming into effect.

- US$2 million on commencement of production.

- US$2 million on the first anniversary of commencement of production.

- A further US$35/tonne of copper for proven reserves

above 200,000 tonnes of copper.

Feasibility Study:

• Comin to submit an updated feasibility study within 6 months
  
• of the revised agreement coming into effect and
• 
  
• Project Development Funding - Comin to provide 30% of
  
• development funding by way of non-interest bearing loans.
  
•  Interest payable by SEK on the remaining 70% of
  
• development funding to be capped at LIBOR plus 3.5%.

Tiger considers the positive resolution of the DRC Government mining

contract review to be a significant step forward in its efforts

to successfully develop the Kipoi Project.

In March 2008 the initial inferred resource for Kipoi Central

was estimated at 13.4Mt at 3.3% Cu containing 439,000 tonnes

of copper, 20,000 tonnes of cobalt and 1,416,000 ounces of silver.

A feasibility study for the first stage of development was completed

in September 2008 based solely on mining of

the high grade oxide (+3.25% Cu ore) section at Kipoi Central,

which comprises Measured and Indicated Resources of 2.86Mt @ 8.1% Cu,

containing 232,000 tonnes of copper.

It is anticipated that an optimisation study commenced in late 2008

and targeting a reduction in capital and operating costs

will be completed in February 2009.

The conceptual target for exploration is to define oxide and sulphide

resources in excess of 1 million tonnes of contained copper

by mid 2009 to support future production of 100,000 tpa of copper metal.

Discussions with financiers and off take partners

Tiger has been in discussions with a number of financial institutions

and potential off takers in respect of the provision of funding

to support project development at Kipoi Central.

The mining contract review has been a significant hurdle

in advancing these discussions,

and following completion of the mining contract review and

the optimisation study the Company will be in a position

to finalise discussions with potential project financiers.

Source: Proactive Investors ,http://www.proactiveinvestors.com.au

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             J-L K.
Procurement Consultant
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