Midnight Sun Challenges Improper Rejection of Kazhiba Licence Renewal
Midnight Sun Mining Corp (TSXV: MMA) (OTC Pink: MDNGF) reports that the Zambian Ministry of Mines has rejected the renewal application for its Large Scale Exploration Licence 21509-HQ-LEL, which hosts the Kazhiba Dome target. This affects one of three licences in the Solwezi Project. The company is challenging this decision and has retained Zambian counsel to protect its interests. Meanwhile, Midnight Sun will shift focus to the Mitu copper target, part of a Cooperative Exploration Plan with First Quantum Minerals. The company aims to define potential oxide copper feed sources for the Kansanshi Mine. At Dumbwa, KoBold Metals is compiling geological data and refining its work plan. The licence issue does not impact the KoBold Earn-In Agreement or other aspects of the First Quantum partnership.
Midnight Sun Mining Corp (TSXV: MMA) (OTC Pink: MDNGF) riferisce che il Ministero delle Miniere dello Zambia ha respinto la domanda di rinnovo per la sua Licenza di Esplorazione su Grande Scala 21509-HQ-LEL, che ospita l'obiettivo Kazhiba Dome. Questo influisce su una delle tre licenze del Progetto Solwezi. L'azienda sta contestando questa decisione e ha ingaggiato un avvocato zambiano per proteggere i propri interessi. Nel frattempo, Midnight Sun si concentrerà sull'obiettivo di rame Mitu, parte di un Piano di Esplorazione Cooperativa con First Quantum Minerals. L'azienda mira a definire potenziali fonti di rame ossidato per la Miniera di Kansanshi. A Dumbwa, KoBold Metals sta compilando dati geologici e affinando il proprio piano di lavoro. La questione della licenza non influisce sull'Accordo di Guadagno di KoBold o su altri aspetti della partnership con First Quantum.
Midnight Sun Mining Corp (TSXV: MMA) (OTC Pink: MDNGF) informa que el Ministerio de Minas de Zambia ha rechazado la solicitud de renovación para su Licencia de Exploración a Gran Escala 21509-HQ-LEL, que alberga el objetivo Kazhiba Dome. Esto afecta a una de las tres licencias en el Proyecto Solwezi. La empresa está impugnando esta decisión y ha contratado a un abogado zambiano para proteger sus intereses. Mientras tanto, Midnight Sun cambiará su enfoque hacia el objetivo de cobre Mitu, parte de un Plan de Exploración Cooperativa con First Quantum Minerals. La empresa tiene como objetivo definir posibles fuentes de mineral de cobre oxidado para la Mina Kansanshi. En Dumbwa, KoBold Metals está recopilando datos geológicos y refinando su plan de trabajo. La cuestión de la licencia no afecta el Acuerdo de Ganancia de KoBold ni otros aspectos de la asociación con First Quantum.
미드나잇 선 마이닝 코퍼레이션 (TSXV: MMA) (OTC Pink: MDNGF)은 잠비아 광업부가 그의 대규모 탐사 면허 21509-HQ-LEL 갱신 신청을 거부했다고 보고합니다. 이 면허는 카지바 돔 목표지를 포함하고 있습니다. 이는 솔웨지 프로젝트의 세 가지 면허 중 하나에 영향을 미칩니다. 회사는 이 결정에 이의를 제기하고 자사의 이익을 보호하기 위해 잠비아 법률 상담사를 고용했습니다. 한편, 미드나잇 선은 먼저 양자광물과의 협력 탐사 계획의 일환으로 미투 구리 목표로 초점을 옮길 것입니다. 회사는 칸산시 광산을 위한 잠재적인 산화구리 공급원을 정의하는 것을 목표로 하고 있습니다. 덤바에서는 코볼드 메탈스가 지질 데이터를 수집하고 작업 계획을 다듬고 있습니다. 면허 문제는 코볼드의 수익 공유 계약이나 퍼스트 쿼안텀 파트너십의 다른 측면에 영향을 미치지 않습니다.
Midnight Sun Mining Corp (TSXV: MMA) (OTC Pink: MDNGF) annonce que le ministère des Mines de Zambie a rejetté la demande de renouvellement de sa Licence d'Exploration à Grande Échelle 21509-HQ-LEL, qui abrite l'objectif Kazhiba Dome. Cela affecte l'une des trois licences du Projet Solwezi. La société conteste cette décision et a engagé un avocat zambien pour protéger ses intérêts. Pendant ce temps, Midnight Sun va se concentrer sur l'objectif de cuivre Mitu, qui fait partie d'un Plan d'Exploration Coopératif avec First Quantum Minerals. L'objectif de la société est de définir des sources potentielles de minerai de cuivre oxydé pour la mine de Kansanshi. À Dumbwa, KoBold Metals compile des données géologiques et affine son plan de travail. Le problème de la licence n'affecte pas l'Accord d'Acquisition de KoBold ni d'autres aspects du partenariat avec First Quantum.
Midnight Sun Mining Corp (TSXV: MMA) (OTC Pink: MDNGF) berichtet, dass das Ministerium für Bergbau Sambia den Antrag auf Verlängerung seiner Lizenz für großangelegte Explorationsarbeiten 21509-HQ-LEL abgelehnt hat, die das Kazhiba Dome-Ziel umfasst. Dies betrifft eine von drei Lizenzen im Solwezi-Projekt. Das Unternehmen wehrt sich gegen diese Entscheidung und hat einen sambischen Anwalt beauftragt, um seine Interessen zu schützen. In der Zwischenzeit wird Midnight Sun den Fokus auf das Kupferziel Mitu verlagern, das Teil eines kooperativen Explorationsplans mit First Quantum Minerals ist. Das Unternehmen hat sich zum Ziel gesetzt, potenzielle Oxid-Kupfer-Rohstoffquellen für die Kansanshi Mine zu definieren. In Dumbwa erhebt KoBold Metals geologische Daten und verfeinert seinen Arbeitsplan. Die Lizenzproblematik hat keinen Einfluss auf die KoBold Earn-In-Vereinbarung oder andere Aspekte der Partnerschaft mit First Quantum.
- Shifting exploration focus to Mitu copper target, potentially defining new oxide copper resources
- Ongoing Cooperative Exploration Plan with First Quantum Minerals remains active
- KoBold Metals partnership for Dumbwa target unaffected, with systematic exploration planned
- Rejection of renewal application for Large Scale Exploration Licence 21509-HQ-LEL (Kazhiba Dome target)
- Suspension of operations in the area covered by the rejected licence
- Potential loss of rights to explore and develop the Kazhiba Dome target
- Delay in exploration activities at Kazhiba, impacting near-term plans
Vancouver, British Columbia--(Newsfile Corp. - August 29, 2024) - Midnight Sun Mining Corporation (TSXV: MMA) (OTC Pink: MDNGF) (the "Company") reports that the Zambian Ministry of Mines and Minerals Development (the "Ministry") has published a decision on its website indicating the Company's renewal application for Large Scale Exploration Licence 21509-HQ-LEL (the "Licence"), which hosts the Kazhiba Dome target, has been rejected. This licence is one of three which make up Midnight Sun's Solwezi Project, and the current status does not affect the other two licences, the Kobold Earn-In Agreement, or the Cooperative Exploration Plan underway with First Quantum aside from timing of drilling, and targets of focus in the near term. While the Company works vigorously to secure the renewal, drilling at Kazhiba will be postponed, and the Company will instead shift immediate exploration plans to the Mitu copper target. The Company will provide details on the Mitu exploration program in a separate news release. The Mitu exploration program is a key component of the previously announced Cooperative Exploration Plan with First Quantum Minerals ("First Quantum") (see news release dated April 23, 2024) to define potential oxide copper feed sources for the Kansanshi Mine.
Midnight Sun President & CEO, Al Fabbro, states: "While we are disappointed in the current situation, we do believe it will be rectified, and we are taking all possible steps to expedite a swift resolution so that we can resume our exploration at Kazhiba. In the meantime, we will launch our plans to work on Mitu, continuing with our Cooperative Exploration Plan with First Quantum to define potential oxide copper feed sources for Kansanshi. At Dumbwa, KoBold has been working diligently compiling all available geological data and refining their work plan. We are excited for KoBold to begin systematic exploration of this large-scale target."
Renewal Rejection Explained
Under Zambian mining law, large scale exploration licences are issued for a four-year period, and may be renewed, on application, for two additional three-year periods. The Licence was originally issued on March 1, 2017 and subsequently renewed on February 28, 2021. In the ordinary course of business, the Company filed an application for the renewal of the Licence on December 1, 2023. The Company understands that the Mining Licencing Committee, which meets periodically to consider renewal applications, met in June and rejected the Company's application. Under Zambian mining law, the Ministry is required to provide formal notice of any rejection decision directly to renewal applicants together with the reasons for the rejection decision. By law, applicants then have a period within which to rectify the application or appeal the decision prior to the final rejection of the renewal application. In this instance, the decision was published on the Ministry's website, but no notice with reasons was provided to the Company.
The Company has received legal advice that until the formal rejection is received, the Company retains its rights to the Licence.
The Company has repeatedly sought explanation from the Ministry regarding the rejection. At this time, the Ministry has not provided any explanation for the rejection, or any formal notice as required by law. Recently, the Ministry published on its website that a new licence has been issued over the Licence area to a new entity. The Company intends to vigorously defend its rights to the Licence and licence renewal and has retained competent Zambian counsel to protect its legal interests. There is no guarantee that the Company will be successful. In the interim, the Company has suspended operations in the area covered by the Licence.
2024 Exploration Plans
On April 23, 2024, the Company announced a Cooperative Exploration Plan with First Quantum to define oxide copper resources at two targets – Kazhiba and Mitu, in order to jointly define potential feed sources for First Quantum's SX/EW oxide copper circuit at the Kansanshi Mine. Initial plans prioritized Kazhiba based on its close proximity to Kansanshi, however, Mitu represents the larger of the two targets, with both locations hosting near-surface oxide copper targets, as well as significant sulphide copper targets which the Company planned to explore simultaneously. While the issue on Licence 21509-HQ-LEL is being addressed, the Company will proceed with planned exploration work at Mitu, including efforts to define an oxide resource at that target.
The Licence issue does not impact the KoBold Metals Company Earn-In Agreement, announced February 20th, 2024, to explore the Dumbwa Target. Exploration plans for Dumbwa will be set out in a separate news release.
Qualified Person: Darin Labrenz, P.Geo., a Qualified Person under NI 43-101, has reviewed and approved the technical data and contents of this release.
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About Midnight Sun
Midnight Sun is focused on exploring our flagship Solwezi Project, located in Zambia. Situated in the heart of the Zambia-Congo Copperbelt, the second largest copper producing region in the world, our property is vast and highly prospective. Our Solwezi Project is surrounded by world-class producing copper mines, including Africa's largest copper mining complex right next door, First Quantum's Kansanshi Mine. Led by an experienced geological team with multiple discoveries and mines around the world to their credit, Midnight Sun intends to find and develop Zambia's next generational copper deposit.
ON BEHALF OF THE BOARD OF MIDNIGHT SUN MINING CORP.
Al Fabbro
President & CEO
For Further Information Contact:
Adrian O'Brien
Director of Marketing and Communications
Tel: +1 604 809 6890
Em: adrian@midnightsunmining.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.
This news release contains "forward-looking statements" within the meaning of the applicable Canadian securities legislation that are based on expectations, estimates, assumptions and projections as at the date of this news release. The information in this news release about the resolution of mineral exploration licence renewals, timing and ability of the Company and KoBold to obtain the approval of relevant regulatory bodies, if at all; timing of the commencement of the earn-in; the work expenditure amounts and timing of those expenditures incurred by KoBold, if at all; the transfer of the relevant property to a joint venture entity, if at all; the respective ownership interests of the Company and KoBold in the joint venture entity; and any other information herein that is not a historical fact may be "forward looking statements". Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (which may, but not always, include phrases such as "anticipates", "plans", "scheduled", "believed" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements and are intended to identify forward-looking statements.
Although the forward-looking statements contained in this news release are based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Such factors include, among others, risks relating to the timing and ability of the Company and KoBold to remove conditional subjects of the Earn-In Agreement, including the ability to obtain and the timing of the approval of relevant regulatory bodies, if at all; risks relating to property interests; risks related to access to the project; risks inherent in mineral exploration, including the fact that any particular phase of exploration may be unsuccessful; the risk that KoBold determines not to proceed with the earn in at any time after completing the minimum work program, and before having expended the full USD
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FAQ
What happened to Midnight Sun Mining's Kazhiba Dome licence in Zambia?
How does the licence rejection affect Midnight Sun Mining's (MDNGF) operations?
What are Midnight Sun Mining's (MDNGF) plans following the Kazhiba licence issue?
Is the KoBold Metals partnership affected by Midnight Sun Mining's (MDNGF) licence rejection?
