Johannesburg, South Africa — MININGREVIEW.COM — 02 July 2009 – Canadian-registered Caledonia Mining Corporation – an African focused mining company which owns the Blanket gold mine in Zimbabwe – has announced that Mitsubishi Corporation has withdrawn from its proposed participation in the Rooipoort and Mapochsgronde platinum projects in South Africa.
In a statement issued here and in Toronto, Caledonia explained that Mitsubishi Corporation had indicated that it did not wish to extend the agreement relating to its proposed participation by Mitsubishi in the Rooipoort and Mapochsgronde platinum exploration projects. Accordingly, the agreement had been terminated as of 30 June 2009, and Mitsubishi would not provide the envisaged exploration funding for the projects. The Rooipoort and Mapochsgronde properties would continue to remain 100% owned by Caledonia.
The statement added that Mitsubishi had concluded that the conditions precedent relating to security of tenure of the prospecting rights held by Caledonia and its subsidiaries, due to the broad based black economic empowerment requirements imposed by the Department of Minerals, did not meet their requirements. The department’s requirement that empowerment must be introduced at the exploration stage was not currently required under South Africa law and, accordingly, had not been envisaged at this stage in the agreement.
Caledonia says it will explore and evaluate other strategic options in respect of the projects. It expects to release its results for the half year to 30 June 2009 on or about 14 August.