Midnight Sun Confirms Kazhiba Licence Remains in Good Standing

Rhea-AI Summary

Midnight Sun Mining Corp (TSXV: MMA) (OTC Pink: MDNGF) has confirmed that its Large Scale Exploration Licence 21509-HQ-LEL, which includes the Kazhiba target, remains in good standing. The company clarified that the licence renewal application was not rejected, contrary to a previous incorrect online notice. The Zambian Ministry of Mines and Minerals Development has deferred the decision on the renewal application pending a site verification report.

Key points:

• The Mining Cadastre Portal has been updated to reflect the correct status of the licence
• Midnight Sun has 14 days from September 12, 2024, to submit a Verification Report
• The company is working to complete and submit the report within the given timeframe
• The Kazhiba target is part of a Cooperative Exploration Plan with First Quantum Minerals

Positive

• Licence 21509-HQ-LEL, including the Kazhiba target, remains in good standing
• Cooperative Exploration Plan with First Quantum Minerals still in place
• Swift resolution of the licence status issue with minimal disruption to exploration plans

Negative

• Renewal application decision deferred pending site verification report
• 14-day deadline to submit Verification Report, with potential risks if not met
• No guarantee of licence renewal even after report submission

Vancouver, British Columbia--(Newsfile Corp. - September 16, 2024) - Midnight Sun Mining Corporation (TSXV: MMA) (OTC Pink: MDNGF) ("Midnight Sun" or the "Company") announces that, further to its August 29, 2024 news release, the renewal application for Large Scale Exploration Licence 21509-HQ-LEL (the "Licence"), which includes the Kazhiba target, was never rejected as had been previously indicated, incorrectly, in an online public notice dated June 17, 2024. The Mining Cadastre Portal has since been updated to reflect this. The Zambian Ministry of Mines and Minerals Development (the "Ministry") has notified the Company in writing that the decision to accept the Company's renewal application was, in fact, deferred to a later meeting of the Mineral Licencing Committee. At this time, the Licence, as outlined in the Company's renewal application, remains in good standing.

Midnight Sun's President & CEO, Al Fabbro, stated: "As a component of the Cooperative Exploration Plan with our neighbours, First Quantum Minerals, our Kazhiba Target represents an exciting opportunity for Midnight Sun to enter near-term production. We are tremendously pleased that this licence issue was able to be rectified quickly and did not create significant disruption to the execution or timing of our plans. I thank our team members in both Zambia and Canada who worked diligently to address and remedy this matter swiftly. I would also like to thank the Zambian Ministry of Mines and Minerals Development for their assistance in rectifying this matter so we can resume our exploration plans. We are now ready to begin our planned work programs."

Kazhiba Licence Issue Details

On December 1, 2023, the Company filed an application for the renewal of the Licence, which includes the Kazhiba target. Under Zambian mining law, large scale exploration licences are issued for a four-year period, and may be renewed, on application, for up to two additional three-year periods. The Licence was originally issued March 1, 2017, and renewed February 28, 2021.

The status of the Licence was incorrectly identified in an online public notice dated June 17, 2024. This incorrect information was subsequently posted on the Mining Cadastre Portal, stating that the Licence had been rejected. In August 2024, it was discovered that the Mining Cadastre Portal was incorrectly showing a new mineral exploration licence overlaying the Licence, listed in the name of Keki Mining Limited. Keki Mining Limited does not now, and never has had, ownership overlapping Midnight Sun's Licence area. Keki did acquire ground adjacent to the Licence which as dropped by the Company during the renewal process. When the errors were identified, the Company undertook a rigorous campaign to rectify the issue, with both Canadian and Zambian teams working directly with the Zambian Ministry of Mines and Minerals Development to rectify the errors as quickly as possible. The Mining Cadastre Portal has since been updated to reflect the correct status of the Licence and remove the overlaying licence.

On September 12, 2024, the Company received a letter dated April 22, 2024, from the Ministry, advising the Company that the application for renewal has been deferred pending a site verification report to ascertain the exploration progress undertaken during the previous tenure (the "Verification Report"). The Verification Report must be prepared by the Geological Survey Department of Zambia (the "Geological Survey Department"). The Company has been provided with 14 days from September 12, 2024, to have the required report prepared and submitted. Company representatives contacted the Geological Survey Department on September 13, 2024 to formally request that a site visit and report be completed for submission within the 14-day period. If this report cannot be filed within the 14-day period, the Company's lawyers will request an extension to this period.

The Company intends to have the required Verification Report submitted within the required time period. Submission of the required report is dependent in part on the availability of third parties and there is no assurance that such persons will be available. Accordingly, there can be no guarantee that the Verification Report will be completed and submitted within the two-week timeframe provided or that an extension beyond the two-week timeframe would be granted, nor is there any guarantee that the Verification Report will be accepted by the Ministry and the Licence renewed.

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 to obtain the approval of relevant regulatory bodies, if at all; 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 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; geo-political risks; the global economic climate; metal prices; environmental risks; political risks; and community and non-governmental actions. Neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking statements. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223524

FAQ

What is the current status of Midnight Sun Mining's (MDNGF) Kazhiba licence?

The Large Scale Exploration Licence 21509-HQ-LEL, which includes the Kazhiba target, remains in good standing. The renewal application has been deferred pending a site verification report.

When does Midnight Sun Mining (MDNGF) need to submit the Verification Report for the Kazhiba licence?

Midnight Sun Mining has 14 days from September 12, 2024, to submit the required Verification Report to the Zambian Ministry of Mines and Minerals Development.

What is the significance of the Kazhiba target for Midnight Sun Mining (MDNGF)?

The Kazhiba target is part of a Cooperative Exploration Plan with First Quantum Minerals and represents an opportunity for Midnight Sun to enter near-term production.

What happens if Midnight Sun Mining (MDNGF) fails to submit the Verification Report on time?

If the report cannot be filed within the 14-day period, the company's lawyers will request an extension. However, there's no guarantee an extension would be granted or that the licence will be renewed even after report submission.