VANCOUVER, March 9 /PRNewswire-FirstCall/ -- Africo Resources Ltd. ("Africo") is pleased to report that Swanmines Sprl. has signed a Memorandum of Understanding (MOU) with the Societe Nationale d'Electricite (SNEL), a public enterprise incorporated in the Democratic Republic of Congo ("DRC"), relating to the supply of electricity to its Kalukundi property.
The Kalukundi property is located in the Katanga Province in the southeast of the DRC. The mineral rights to Kalukundi are held by Swanmines Sprl. ("Swanmines") in which Africo holds a 75% interest and Gecamines, the remaining 25%.
Pursuant to the MOU, Africo will finance studies targeting reinforcement of the capabilities of SNEL's electrical system in order to guarantee the availability of power to Swanmines, and the diversion of high voltage power lines to enable mining of the area that the lines currently overhang. Swanmines has agreed to pay the cost of the studies and raise the funding required for the installation of the required infrastructure. SNEL will supply high voltage as needed at the official rate and will reimburse Swanmines' funding out of revenue from the sale of power.
"We're delighted to have completed this essential step," said Tony Harwood, President and CEO of Africo. "With roads, water, rail and electricity on-site and C$89 million in cash reserves, Africo is well positioned for future potential development."
Note for editors:
Africo Resources Ltd. is a Canadian mineral company engaged in developing, acquiring and exploring for base metal and gold assets in Africa. The company's main project is Kalukundi, a development stage copper-cobalt deposit located in the Katangan Copperbelt in the Democratic Republic of Congo (DRC). The development team has an operational base in the DRC, with the company corporate offices located in Vancouver, Canada. The company listed on the Toronto Stock Exchange in December 2006.
Forward-looking statements:
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Africo expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Africo believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Africo's management on the date the statements are made. Other than as required by law, Africo undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
