Joint Venture update

    RNS Number : 9779F
  Kiwara PLC
  16 October 2008
   

    JSE - KWR

    AIM - KIW

    ISIN - GB0007702953
    16 October 2008


    Kiwara plc

    ("Kiwara" or the "Company")

    Kiwara increases holding in the Joint Venture Company, Kalumbila Minerals Ltd, to 80%


    Kiwara is pleased to announce that under the terms of its Joint Venture (JV) agreement with LM Engineering Ltd on Prospecting Licence
267 and following expenditure in excess of US$2.2million on exploration, the Company has exercised its option to increase its shareholding
in the Joint Venture company, Kalumbila Minerals Ltd by 5% to an 80% holding in the Zambian based subsidiary.


    Key Points:

    *     The JV required Kiwara to spend US$2.2 million within three years from November 2006,  in order to earn an additional 5% 
    *     Kiwara's latest management accounts to 30 September 2008 show cumulative exploration expenditure on Licence 267 of US$3.3 million
    *     Additional 5% of Kalumbila Minerals Ltd shares now issued to Kiwara
    *     Kiwara Resources (Zambia) Ltd now holds 80% of Kalumbila Minerals Ltd

    Colin Bird (Chairman) said: "The early completion of the earn-in demonstrates the Company's confidence in the assets of the Joint
Venture, which has been fully supported by the exploration results obtained to date."

    About Kiwara:
    Kiwara is an exploration company with a focus on base metals in the Republic of Zambia, which is a major copper producing country.
    Kiwara, through its majority owned subsidiary, Kalumbila Minerals, holds Prospecting Licence 267 which is within the Kabompo Dome in
North Western Zambia, a geologically complex antiformal feature, which contains a number of base metal and uranium targets including
Kalumbila, Kawako and Kawanga. This is within the area considered to be the western extension of the Copperbelt, an increasingly significant
mining area that contains the recently developed Kansanshi and Lumwana copper mines.


    For further information, please contact:

    Kiwara Plc                                                            Tel: [phone]
    Colin Bird, Chairman

    Peter Vivian-Neal, Chief Executive Officer           Tel: [phone]

    Investec Bank, Johannesburg
    Robert Smith / Gavin Hall                                     Tel: [phone]

    Investec Bank (UK) Limited                                  Tel: [phone] 
    Gerard Kisbey-Green / Jan Bosch

    Bishopsgate Communications Ltd                       Tel: [phone]
    Nick Rome

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
JVEMFBRTMMJBMBP