Rio Tinto Makes Payment of US$1.43 Million to Kilo Under Isiro Iron Ore Option
TORONTO, ONTARIO -- (Marketwire) -- 01/05/12 -- Kilo Goldmines Ltd. (TSX VENTURE: KGL)(FRANKFURT: 02K) ('Kilo' or the 'Company') is pleased to announce that Rio Tinto Mining and Exploration Limited ('Rio Tinto') has made payment to Kilo the option payment due on or before December 31, 2012 pursuant to the earn-in option to joint venture agreement in respect of the Isiro Iron Ore Project in Orientale Province, North East Democratic Republic of Congo (the 'Agreement') entered into on April 12, 2011, as amended, between Rio Tinto, Kilo and Suez Holdings Limited ('Suez'). In consideration for the accelerated payment, Kilo received the discounted amount of US$1,428,125 versus the US$1.5 million otherwise payable pursuant to the Agreement by the December 31, 2012 due date.
Rio Tinto also exercised an option to acquire a 15% equity interest in the joint venture company from Suez such that Kilo continues to hold 75%, Rio Tinto 15% and Suez 10%. Rio Tinto has also satisfied its work commitments to date under the Agreement.
Alex van Hoeken, President & CEO, commented 'We are very pleased with the progress of the project to date. This confirms Kilo's strategic vision of acquiring properties of merit in the district and value creation for the Company. The accelerated payment will benefit the advancement of the company's Somituri project during 2012.'
About Kilo
Kilo Goldmines Ltd. is a Canadian gold exploration company operating in the Democratic Republic of Congo (DRC). The Company has over 7,000 square km of favourable Archaean Kabalian greenstone in the Kilo-Moto area in north-eastern DRC. Kilo recently announced an inferred resource on the Adumbi Deposit of the Somituri Project of which the Company owns a 71.25% interest in the DRC entity that holds the Somituri Project Exploitation Permits.
The Company is also working on a number of other prospective areas which contain historical workings in the same region. It also has a joint venture with Rio Tinto Ltd. on potential iron ore licences in north-eastern DRC.
This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Kilo Goldmines Ltd.
Alex van Hoeken
President and CEO
+1-416-360-3415
avh@kilogoldmines.com
Kilo Goldmines Ltd.
Suite 1200, 141 Adelaide Street West
Toronto, Ontario M5H 3L5
Website: www.kilogoldmines.com
Facebook: www.kilogoldmines.com/facebook
Twitter: www.twitter.com/kilogoldmines
