Kombat Copper Inc. ("Kombat Copper" or the "Company"), is pleased to announce that it has signed a Memorandum of Agreement (the "Agreement") with a Namibian based company to fast track scaled production of lead mineralization from the Kombat Mine. A due diligence period is in effect.
Bill Nielsen, President and CEO of Kombat Copper, commented: "This Agreement represents a positive step forward for the Company in what has been a challenging sector leading to a low commodity price environment. We will benefit from this partnership as we now have the potential to start generating income from the Kombat property as our partner starts a scaled mining approach while we support the project with our extensive infrastructure and knowledge of the Kombat deposit. It will also be setting the stage for the Company to be in a sound financial position to enter detailed technical engineering studies on other areas of the Kombat Mine. As well, this Agreement maintains activity on the mine site, facilitates our mining license and brings local employment and labour to the area."
Kombat Copper expects that its partner will focus on the Kombat East area looking at both underground and surface mining of known occurrences of significant lead mineralization. They will also be assessing the Gross Otavi deposit located 10 kilometers to the west of the Kombat Mine where a historic resource has been defined. The Kombat East area has shaft and ramp access, which will allow for a relatively quick start up of operations. The Kombat mill is to be refurbished by its partner to produce lead concentrates.
An assessment of 45 years of historic Kombat Mine documents has indicated that the Kombat East area of the Kombat Mine contains appreciable amounts of lead mineralization. This documentation also indicates that significant lengths of mineralization may be present and a low-grade lead envelope with copper and silver credits is interpreted to be present. Past drilling has revealed verifiable assays including Hole KE593 that intersected 67.0m averaging 2.36%Pb and 0.34%Cu, Hole KE557 that intersected 100.0m averaging 2.42%Pb and 0.33%Cu and hole KE556 that intersected 41.0m averaging 2.35%Pb and 0.32%Cu. Work is ongoing to determine the overall configuration and extent of the lead mineralization. Readers are cautioned that these historical records have been examined but not verified by a qualified person. Further work is required to verify that these historical assays are accurate.
The Agreement is structured so that it does not exploit Kombat Copper's core copper resource base and does not prohibit Kombat Copper from resuming full mining activities on the remainder of the deposit upon completion of technical and engineering studies with respect to copper resources.
The details of the Agreement will be provided upon completion of a definitive agreement, which the Company expects to negotiate in early 2016. It is being structured to provide monthly cash income to the Company, enabling all corporate costs in Namibia to be covered and for an aggressive revenue sharing model on the majority of production.
F. W. Nielsen, P.Geo., President and CEO of Kombat Copper, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.