re: PAF.V - C$0.98 - Pan African Mining
First mentioning of their Uranium strategy (old PR)
panafrican.com
February 03, 2005
Pan African Enters Into Uranium Joint Venture in Madagascar
VANCOUVER, British Columbia--Feb. 03, 2005--PAN AFRICAN MINING CORP. (the "Company") is delighted to announce that it has entered into a preliminary agreement with L'Office des Mines Nationales et des Industries Strategiques ("OMNIS"), for the establishment of a joint venture with respect to exploration, development and exploitation of certain prospective uranium properties in Madagascar. OMNIS is a government agency of the Malagasy State charged with oversight and administration of the country's strategic resources of uranium and hydrocarbons.
In accordance with the terms of said agreement, the Company is proceeding with organization of a new operating subsidiary in Madagascar named PAM Atomique Sarl, which will be 20% owned by the Malagasy State through OMNIS. Such ownership interest is reducible under certain circumstances to a floor of not less than 10% in the event OMNIS elects not to participate in funding of commercial mining operations at the exploitation stage. The Company will contribute the initial capital for exploration. The Company presently conducts all of its operations in the country through its existing subsidiary PAM Madagascar Sarl.
OMNIS is granting the Company exclusive rights to conduct exploration, development and exploitation on mining permits controlled by the Company within four specified perimeters in Madagascar, namely, Tranomaro, Folakara, Faratsiho and Makay. Within these perimeters, the Company presently controls some 9000 sq. km. in aggregate, although known uranium occurrences are confined to a much smaller area. The underlying licenses will be transferred to PAM Atomique Sarl as soon as practicable following its organization. PAM Madagascar Sarl will continue to hold all other mining permits covering gold, metals, precious stones and industrial commodities.
Included within the license area of the four perimeters are sites of historic uranium production by the French, as well as known uranium occurrences and in some cases historic uranium resources. The French Commissariat a l'Energie Atomique ("CEA") exploited uranium from the regions of Folakara and Tranomaro during the period from the late 1930's through the 1950's, until market and political conditions caused a shift in French production to other countries including Niger and Gabon. Among well-known historic mining sites within the Company's license area are the villages of Folakara C.E.A and Ambindrakely. Under the agreement, OMNIS is providing the Company with access to its database and archival information, as well as the assistance and cooperation of its own geological team.
The Company views the historic mining sites and documented uranium occurrences as highly prospective, and is presently developing a plan of research focusing initially on these areas within the controlled perimeters that have the proper geological setting and are deemed to be most productive. The plan of research is subject to review and approval by OMNIS prior to implementation. In addition, the joint venture is subject to formal ratification and approval by the Parliament of Madagascar, insofar as uranium is specified to be a strategic resource under applicable law.
According to the Company's CEO, Irwin Olian, "We are excited to work in partnership with OMNIS to explore and develop Madagascar's uranium resources. By providing financial resources from our strong international sources, state of the art exploration technology, together with management and geological support from our team of international and Malagasy professionals, we are in a position to maximize the potential for success. This success will accrue not only to the shareholders of Pan African, but also to the benefit of all Madagascar, through creation of new jobs, building of infrastructure in remote regions, financial gains through ownership and royalties, and a potential long-term source of energy for future Malagasy generations."
At the same time, the Company remains enthusiastic about its ongoing gold and diamond exploration programs. Diamond drilling is continuing on the Company's Mountain of Gold Project in the Dabolava Region; and a new, comprehensive round of stream sampling for our diamond program is scheduled to begin in certain key areas after conclusion of the rainy season. We are looking forward to the results of these exploration programs.
About Pan African
The Company is an exploratory resource company with approximately 10,000 square kilometres of diversified mineral properties in Madagascar. The Company is exploring these properties for gold, uranium, precious stones, base metals and industrial commodities. Its operations in Madagascar are carried out through its operating subsidiary, PAM Madagascar Sarl. The Company has offices in Vancouver, Canada and Antananarivo, Madagascar. More information about the Company is available at www.panafrican.com
ON BEHALF OF THE BOARD OF DIRECTORS OF PAN AFRICAN MINING CORP.
Irwin A. Olian, President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
Contact:
Pan African Mining Corp.
Irwin Olian
President and CEO
Phone: (604) 899-0100
Fax: (604) 899-0200
tigertail@panafrican.com
Pan African Mining Corp.
Karim Gangji
Technical Operations Manager
Phone: (604) 521-6846
Fax: (604) 899-0200
karim@panafrican.com |
