Dar es Salaam, Tanzania (PRWEB) December 28, 2012
Kastan (http://www.kastanmining.com) announced today that the Company has entered into a development agreement with the LIBO Group (http://www.li-bo.com), a privately held Chinese manufacturing company. Under the terms of the agreement, Kastan and LIBO will install a copper leaching plant in Tanzania and establish a joint venture to specialize in processing copper ore into higher value added copper products targeted for the export market.
LIBO will acquire a majority ownership position in Kastan Industries Limited, which is currently a Kastan wholly owned subsidiary. The company will be renamed as LIBO-Kastan Industries Limited and is expected to begin operations in the Second Quarter of 2013. As part of the agreement between Kastan and LIBO the LIBO Group has established a Research and Development Center at its corporate headquarters to ensure environmentally responsible, best-in-class processing procedures are employed in the Tanzanian production facilities. The transfer of technology to Tanzania will be supported by an extensive training program for local staff which will enable them to operate the facilities to world-class standards.
John Tate, Kastan CEO, remarked, “We are excited about the relationship we are establishing with the LIBO Group. Charles, LIBO’s President and I have been working on this project since early 2012 and are both convinced the opportunities present for our companies to launch upstream copper processing and manufacturing activities in Tanzania are credible. Many challenges remain ahead of us as we launch this initiative, however, we are convinced that keeping as much of the copper value chain in Tanzania as possible is a long term strategy that will unlock enormous value for all stakeholders.”
LIBO Group President, Yuefeng (Charles) Luo, continued, “Over the last 3 years I have been evaluating business opportunities in Southern and Eastern Africa in an effort to establish LIBO’s footprint on the continent. We believe that Tanzania, with its strategic location and extensive natural and human resources represents a preferred investment destination for us. John and I have spent considerable time in developing what we believe is a workable business model that is a win-win for all stakeholders and that will enable us to grow aggressively with the Tanzania copper industry over the coming years. We look forward to joining hands with Kastan to launch this important initiative.”
About Kastan Mining
Headquartered in Dar es Salaam, Tanzania, Kastan Mining is a mining and exploration company focused on the mineral industry in Tanzania. Kastan has several initiatives underway at various stages of development ranging from early exploration to full production.
About the LIBO Group
Established in 1988, LIBO is one of the largest companies in China manufacturing copper imbedded products, with annual sales of approximately US$800 million. LIBO currently uses approximately 100,000 tons of copper per year in their manufacturing activities and has a minority interest in a copper mine in China.
This press release contains statements which constitute forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Kastan’s control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and other factors over which Kastan has limited control.