AAA joins EITI (1st DRC mining Co to join)Adastra DRC Subsidiary to Join Extractive Industries Transparency Initiative
Thursday August 25, 9:07 am ET
Trading: TSX and AIM: AAA
LONDON, UK, Aug. 25 /CNW/ - Adastra Minerals Inc. ("Adastra") announces that the Board of Directors of its subsidiary Kingamyambo Musonoi Tailings Sarl ("KMT"), which owns 100% of the Kolwezi Cobalt and Copper Tailings Deposit (the "Kolwezi Project") in the Democratic Republic of Congo ("DRC"), has unanimously resolved to become a signatory of the Extractive Industries Transparency Initiative ("EITI").
The EITI is a coalition of governments, companies, civil society groups, investors and international organisations. Its objective is improved governance in resource rich countries through the full publication and verification of all payments to governments by companies in the oil, gas and mining sectors and a corresponding publication of all receipts from the natural resource sectors by governments.
Resource rich countries implementing the EITI can benefit from an improved investment climate by providing a clear signal to investors and the international financial institutions that the government is committed to strengthening transparency and accountability over natural resource revenues. In turn this will permit a greater scrutiny by civil society of governments' stewardship of financial resources.
The Government of the DRC has endorsed the EITI and is currently considering how best to implement the intiative. KMT will be the first mining company in the DRC to join the EITI.
"We believe that a high level of transparency is crucial for any mining company operating in a developing country. We are therefore very committed to the principles laid out by the EITI, which will help to engender trust and dialogue between all stakeholders in mining revenues," said Tim Read, President and CEO of Adastra. "The Government of the DRC has committed itself to creating an environment conducive to private-sector led growth, as evidenced by the forthcoming democratic elections, the promulgation of the new mining code, and the establishment of macro-economic stability leading to the renewal of economic growth. We believe the implementation of the EITI will provide further evidence to the international business community that the DRC is open for business."
About the Kolwezi Project
Adastra's Kolwezi Project consists of two dams containing 112.8 million tonnes of oxide tailings, grading 1.49% copper and 0.32% cobalt, as determined by Dr. Isobel Clark of Geostokos Limited, a "qualified person" as defined by the Canadian Securities Administrators' NI 43-101. This resource has the potential to host one of the world's largest and lowest cost cobalt producers. Such a project would generate significant tax and foreign exchange earnings, as well as providing local employment and contributing to the revival of the DRC's copper belt infrastructure.
About KMT
KMT is the DRC registered operating company for the Kolwezi Project. It is currently owned 82.5% Adastra, 5% by the Government of the DRC and 12.5% by La Générale des Carrières et des Mines ("Gécamines"), the government owned mining company. All three shareholders are represented on the KMT Board. The International Finance Corporation (a part of the World Bank Group) and the Industrial Development Corporation of South Africa have confirmed their intentions to exercise options to acquire 7.5% and 10.0% of KMT, respectively, from Adastra, whose shareholding would thereby be reduced to 65%. Both new investors strongly endorse the decision to become signatories of the EITI.
About Adastra
Adastra is an international mining company listed on the Toronto Stock Exchange and on AIM, in London, under the symbol "AAA". It is currently developing several mineral assets in Central Africa, including the Kolwezi Project and the possible rehabilitation of the Kipushi zinc mine in the DRC. Adastra's growth strategy emphasizes the creation of shareholder value through the development of world-class resources in stable or stabilizing political environments.
For further information on the Extractive Industries Transparency Initiative, please review: https://www.eitransparency.org/