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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.
- 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
Gsm: (250) 08470205
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P.O. Box 3867
Kigali - RWANDA
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