Magnus seeks gold in Africa

Magnus’ strategy is to establish alliances with local and international organisations that have proven expertise in the exploration and mining of precious metals. The Company’s joint venture partner in China, for example, is one of the country’s most successful geological exploration teams, Brigade 209 of the Nuclear Industry of Yunnan Province, known simply as Team 209. Magnus says that it has also formed a co-operative relationship with AMEC, an international engineering services company highly regarded worldwide for its mining expertise.

Last week, Magnus announced that it was acquiring a 100 percent stake in African Mineral Fields, in which Magnus’ CEO already has a controlling shareholding. AMF is a company that holds an exclusive option to acquire 100 percent in four gold projects in Uganda, at the same time increasing its presence into Africa.

Magnus says the African continent is experiencing resurgence in investment into mineral exploration and development and by acquiring African Minerals that would give it access to the continent’s untapped mineral resources.

Two of the four Ugandan projects, Mwerusandu and Mitoma, are located in the Karagwe-Ankolean Belt, believed to be the northern extension of the gold-rich Kibaran Belt that originates in the east-central Democratic Republic of Congo.

The Kibaran Belt hosts major gold deposits, including Banro Corporation’s recent finds that have an inferred resource of some 5.4 million ounces. This belt of highly prospective rocks has been very under-explored in Uganda. African Mineral Fields’ other two projects, Mubende and Lugazi, are also located in highly prospective areas, Magnus says.

Magnus says it will issue a total of six million common shares and two million Series “B” preferred shares to acquire 100 percent of African Mineral. The two million Series “B” preferred shares will convert to up to two million common shares subject to the properties of African Mineral developing a minimum of 250,000 resource category gold ounces and based upon one share for each gold ounce in the inferred, resource and proven categories.

“The acquisition gives Magnus shareholders instant exposure to some of the most promising gold properties in Africa,” said Graham Taylor, President and CEO of Magnus. “The African Mineral Fields management team has extensive experience throughout Africa. Combined with the specific expertise of the Joint Venture partner in East Africa, it strengthens African Mineral Fields’ ability to move quickly to develop these properties to their full potential.”

In addition to Uganda, African Mineral Fields also has interests in South Africa, the world’s largest gold producer. It is also undertaking initial exploration mine development projects in Ethiopia, the Democratic Republic of Congo, Tanzania and Madagascar.

Magnus says the African continent has more than 50 nations with undeveloped or under-developed mineral and/or oil and gas resources, which collectively hold 55 percent of the world’s gold resources.

“In many cases, war, political unrest or uncertain regulation has long hindered or altogether prevented exploration and development using modern methods.

“Today, however, many resource-rich African countries have established a level of political stability and economic reform that is creating an increasingly attractive environment for investment,” said a statement from the company.

It says in the last eight years, Africa built seven new gold mines with resource figures of 55 million ounces, more than any other region, and over the next eight years, 26 percent of new gold discoveries are projected to come from the continent.

Magnus was founded by Taylor in 2003. Hitherto it has concentrated on its Chinese exploration projects in which it retains a 90 percent interest ‘ Huidong and Mangshi, the former of which has a resource estimated at 5.4 million ounces of gold. ‘ Minweb.

October 2006
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