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Jinchuan Board Approves Tiomin Kenya Purchase
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TORONTO -- September 8, 2008 - Tiomin Resources Inc. ('Tiomin' or the
'Company') (TSX: TIO) is pleased to announce that the board of
directors of Jinchuan Group Limited ('Jinchuan') has approved the
Memorandum of Understanding ('MOU') in which Jinchuan acquires 70% of
Tiomin Kenya Limited ('TKL'), a wholly owned subsidiary of Tiomin that
owns 100% of the Kwale Mineral Sands Project ('Kwale' or 'the
project'), for US$25 million invested into TKL.
Jinchuan's board also authorized its management to cooperate with
Tiomin to finalize the definitive documentation and address any related
issues. This positive step sets the stage to close the transaction by
November 1, 2008 as anticipated in the MOU and announced on July 29,
2008.
Under the terms of the MOU, Jinchuan will procure all financing, on
normal commercial terms, to develop Kwale. Additional information
regarding the transaction is contained in the July 29th press release:
'Tiomin and Jinchuan sign agreement to develop the Kwale Titanium
Project'.
Mr. Robert Jackson, CEO of Tiomin, commented "We are making good
progress with many of the steps required to close the transaction on
schedule. However, Tiomin and Jinchuan have made it clear in writing
to the Government of Kenya ('GoK') that it must complete the
outstanding Conditions Precedent that caused Tiomin's last attempt to
finance and develop Kwale to fail. Wrong and misleading information,
attributed to GoK officials, claiming that Tiomin has insufficient cash
resources and the GoK has completed all the required actions, routinely
appear in the media in Kenya. These claims are grossly incorrect.
Jinchuan's funding and building of the project is dependent upon the
GoK honouring its commitments. The responsibility for success or
failure now rests firmly with the bureaucrats of the GoK who must
complete their work for the deal to close".
About Jinchuan Group Limited
Jinchuan is a major integrated non-ferrous metallurgical company
engaged in mining, concentrating, smelting and chemical engineering
that produces nickel, copper, cobalt, rare and precious metals and also
some chemical products such as sulfuric acid, caustic soda, liquid
chlorine, hydrochloric acid and sodium sulfite, together with some
further processed nonferrous metals products. Jinchuan's output of
nickel and platinum group metals respectively accounts for more than
90% of China's total production.
About Tiomin Resources Inc.
Tiomin is maximizing shareholder value by the acquisition, exploration
and development of industrial mineral, gold and base metal projects.
Jinchuan, one of China's largest mining companies, owns 20% of Tiomin.
Tiomin has three main assets: $23.7 million of cash at June 30, 2008, a
49% interest in the Pukaqaqa copper and gold project in Peru and a 100%
interest in the Kwale titanium project in Kenya. Tiomin's share price
currently only reflects the value of its cash position and it receives
no value for its other assets in Peru or Kenya. Tiomin is also working
to optimize the value of its shares by acquiring, or investing in,
other prospective exploration properties.
Tiomin and its 51% partner at Pukaqaqa, Compa�ia Minera Milpo S.A.
('Milpo'), have an existing NI 43-101 measured and indicated copper
resource and scoping study at Pukaqaqa, and also recently expanded its
land position through the acquisition of the Puka Sur property.
Tiomin and Milpo plan an extensive exploration program in 2008/9 aimed
at increasing the resources. Mineral resources of the Pukaqaqa deposit
are classified as Measured, Indicated and Inferred. Measured and
Indicated Resources, using a cut-off of 0.3% Cu, have been evaluated at
99,147,000 tons @ 0.56% Cu and the Inferred Resources total 58,662,000
@ 0.60% Cu.
The table below, which should be read in conjunction with the full
report, presents the results obtained by Milpo and validated by
Met-Chem Canada Inc. in the NI 43-101 compliant Technical Report
prepared by Guy Saucier, Eng. Senior Geological Engineer and Project
Manager. The full report was filed on December 7, 2007 and is available
on SEDAR.
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Resource Category (i) Cut-off Total
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Cu(%) Tonnes
(000) Cu(%) Au (g/t) Mo (ppm) Ag (g/t)
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Measured 0.3 2,793 0.62 0.08 78 1.64
0.4 2,190 0.70 0.09 73 1.74
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Indicated 0.3 96,355 0.55 0.09 108 1.69
0.4 62,867 0.66 0.10 106 1.78
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Measured & Indicated 0.3 99,147 0.56 0.09 107 1.69
0.4 65,056 0.67 0.10 105 1.78
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Inferred 0.3 58,662 0.60 0.11 106 2.30
0.4 39,014 0.73 0.13 101 2.47
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In Kenya, TKL's obligations under Kwale's mining lease remain subject
to Force Majeure while the GoK completes the remaining conditions that
will be required by lenders to finance Kwale. Tiomin expects that with
Jinchuan's acquisition of a 70% interest in TKL, the Kwale project will
be developed and that the GoK will improve its efforts to be more
efficient in completing the remaining items to ensure the construction
and development of the project.
Tiomin also owns a 17.9% interest in Kivu Gold Corporation, a company
focused on mineral exploration in sub-Saharan Africa.
Tiomin also expects to complete by October 1, 2008 its previously
announced transaction with Radiant Resources Inc. ('Radiant') (TSX-V:
RRS). Radiant is a base metals and gold exploration company focused on
the Altay Shan mineral belt in Xinjiang Province in northwestern China.
Radiant is in partnership with Baodi, which is owned by the provincial
government. Radiant and Baodi own a joint venture company, Xinjiang
Pacific Resources ('XPR'), which owns the portfolio of exploration
properties that are of interest to Tiomin. Radiant has satisfied the
contractual requirements to increase its ownership of XPR from 51% to
70% and is in the process of registering this change. Radiant has a
right to earn up to 90% of XPR.
To find out more about Tiomin Resources Inc. and Jinchuan Group Ltd.,
please visit the company websites at www.tiomin.com and www.jnmc.com.
For further information on Tiomin please contact:
Jim O'Neill, VP Corporate Controller and Investor Relations
E-Mail: joneill@tiomin.com
Phone: 416-350-3779, ext. 231
Certain of the information contained in this news release constitute
'forward-looking statements' within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to those respect to the prices
of metals and minerals, estimated future production, estimated costs
of future production and the Company's sales policy, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any forecast results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the actual prices of copper and
gold, the actual results of current exploration, development and
mining activities, changes in project parameters as plans continue to
be evaluated, as well as those factors disclosed in the Company's
documents filed from time to time with the Ontario Securities
Commission.
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Copyright (c) 2008 TIOMIN RESOURCES INC. (TIO) All rights reserved.
For more information visit our website at http://www.tiomin.com/ or
send mailto:news@tiomin.com
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