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Simberi Mining Corporation: Press Release
January 6, 2006
Simberi Gold Corporation (“Simberi”) – Simberi is pleased to announce that it has reached an agreement in principle with Quartern Holdings Ltd. (“Quartern”) to acquire the remaining 33.3% interest in the New Congo Resource Development Company Inc. (“NCDC”), a corporation that has interests in natural resource holdings in the Democratic Republic of Congo (DRC).
NCDC Background
NCDC, a Canadian corporation, was established in 2004 as a new mineral exploration and development business to exploit initially the Kakanda copper and cobalt tailings dump located in the Democratic Republic of Congo (the “Kakanda Project”). PTM Minerals (Cayman) Ltd. (“PTM Minerals”), a Cayman Islands domiciled mineral exploration and development company, established the Kakanda Project in 1997. PTM Minerals was granted the concessions pursuant to a joint venture agreement with Gecamines, the state owned copper mining company, in 1997. NCDC acquired all of the outstanding shares of PTM Minerals in 2004. Simberi has recently acquired 400,000 common shares of NCDC, resulting in an approximate 66.7% equity ownership in NCDC.
Terms of the Agreement
Simberi has agreed in principal to purchase from Quartern, and Quartern has agreed to sell to the Simberi, the remaining 33.3% of the outstanding shares of NCDC and Quartern has agreed to continue its role in the development of the Kakanda Project in exchange for the following:
a) payment by Simberi to Quartern of $80,000 in cash; and
b) the issuance by Simberi to Quartern of 13 million common shares of Simberi.
The completion of this agreement is subject to finalization of formal documentation and receipt of regulatory and TSX Venture Exchange approval. Simberi is a junior resource company focused on the exploration and acquisition of developed low cost precious and base metal projects internationally. The company’s objective is to aggressively explore the potential for investing in a number of precious and base metal properties with the aim to become a metal producer.
To find out more about Simberi (TSXV: SAU), please contact Mike Newbury or Shanda Theaker at (416) 603-7200 or visit our website at www.simberigold.com. Neither the TSX Venture Exchange, nor any other securities regulatory authority has approved or disapproved of the contents of this news release. This press release includes certain “Forward-Looking Statements” within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are “Forward-Looking Statements” that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these “Forward-Looking Statements”. All dollar amounts are Canadian dollars unless otherwise noted.
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