Canadian company announces agreement to mine gold in Tete, Mozambique

12 September 2006

Maputo, Mozambique, 12 Sept – Canadian company Pan African Mining Corp. said Monday it had agreed with mining company Manica Minerals Ltd to mine for gold at two projects in the Mozambican province of Tete, in the center of the country.

In a statement Pan African said the agreement made it possible to acquire 85 percent of each of the two projects in Tete, which are currently being developed by Manica Minerals, and are known as Casula and Fingoe.

In return the Canadian company will invest a minimum of around 125,000 euros every year in each of the two projects for the first two years.

For the Casula project nine mining licenses have been granted, eight of which to Manica Minerals, a South African company that operates in the South and West of the African continent.

At Fingoe, Manica Minerals has four mining licenses for a 45,000 hectare area, according to the same statement.

The Pan African Mining Corp. currently has mining projects in Madagascar, through its subsidiary PAM Madagascar, which min uranium, gold and other minerals. (macauhub)