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Headline: Takara Resources Inc.: South African Coal-Applications for Prospecting Rights
Symbol: TKK
TORONTO, ONTARIO--(Marketwire - May 21, 2008) -
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Takara Resources Inc. (TSX VENTURE:TKK) ("Takara") announces that it has, together with its strategic alliance partner, Aphrodeities Mining (Pty) Limited, completed and submitted to the South African Department of Minerals and Energy, applications for Prospecting Rights ("Applications") on 26 properties prospective for coal; all of the properties are located in South Africa, in a region active in coal exploration and production.
The properties that are subject to the submitted Applications were selected on the basis that they cover areas which are underlain by coal-bearing formations (South African Council for Geoscience). The Applications include a proposed Five Year Prospecting Work Program. Should all Applications be accepted and the prospecting rights granted, the total exploration commitment over a five year period, in order to maintain all 26 properties in good standing during the life of the permits, would total approximately CDN$8,000,000. Of this amount, CDN$360,000 would be obligated to be incurred for the Year 1 program.
The granting of a Prospecting Right from the South African Department of Minerals and Energy is based on the fulfillment of various criteria, one of the most important being the ability to demonstrate a measure of participation by historically disadvantaged South African residents who, prior to 1994, did not have access to such opportunities (this regime is commonly referred to as Black Economic Empowerment ("BEE")). Additionally, financial and technical ability are important elements that will be considered.
The application process in South Africa is competitive, and accordingly, there is no assurance that Takara will be granted any of the Prospecting Rights applied for. Takara's strategic alliance with Aphrodeities Mining (a company that qualifies as a BEE) however, provides a level of strength as a junior explorer in South Africa, and in the southern parts of Africa, particularly given the mutually exclusive attributes that each partner brings to the effort.
In the event that Takara Resources is awarded any of the rights applied for, it shall hold an indirect 50% interest in the permits through a private subsidiary company, that is held 50% by Takara and 50% by Aphrodeities, a private arms-length South African company engaged in mineral exploration.
The memorandum of understanding between Takara and Aphrodeities Mining formed the mandate for the Venus Energy Strategic Alliance, which continues to be in force. In addition to launching the Applications for Prospecting Rights described above, Takara and its local geological team are actively pursuing, evaluating, and negotiating terms for the acquisition of various existing coal projects, both in the Republic of South Africa and in southern Africa.
There is no guarantee that Takara will be granted any of the Prospecting Rights applied for, nor is there any assurance that the titles to the properties applied for will be available by the time that the Applications are vetted in full by the Department of Minerals and Energy. Accordingly, Takara will continue to review additional properties prospective for coal exploration with a view to making additional Applications, as well as working closely with its geological advisors in respect of ongoing evaluation of advanced/existing coal projects held by third parties.
The securities of Takara Resources Inc. have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any U.S. State, and may not be offered or sold in the United States or to any "US Person" (as defined in Regulation S under the Securities Act of 1933) absent registration or an exemption from registration.
Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. All of the forward-looking information contained in this press release is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by Takara, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Takara or its business operations. Takara disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.