Midnight Sun Challenges Improper Rejection of Kazhiba Licence Renewal
Midnight Sun Challenges Improper Rejection of Kazhiba Licence Renewal
Vancouver, British Columbia, August 29, 2024 . Midnight Sun Mining Corporation (TSXV:
MMA / OTC: MDNGF) (the “Company”) reports that the Zambian Ministry of Mines and
Minerals Development (the “Ministry”) has published a decision on its website indicating
the Company’s renewal application for Large Scale Exploration Licence 21509 -HQ-LEL (the
“Licence”), which hosts the Kazhiba Dome target, has been rejected. T his licence is one of
three which make up Midnight Sun’s Solwezi Project, and the current status does not affect
the other two licences, the Kobold Earn-In Agreement, or the Cooperative Exploration Plan
underway with First Quantum aside from timing of drilling, and targets of focus in the near
term. While the Company works vigorously to secure the renewal, drilling at Kazhiba will be
postponed, and the Company will instead shift immediate exploration plans to the Mitu
copper target. The Company will provide details on the Mitu exploration program in a
separate news release. The Mitu exploration program is a key component of the previously
announced Cooperative Exploration Plan with First Quantum Minerals (“First Quantum”)
(see news release dated April 23, 2024) to define potential oxide copper feed sources for the
Kansanshi Mine.
Midnight Sun President & CEO, Al Fabbro, states: “While we are disappointed in the current
situation, we do believe it will be rectified, and we are taking all possible steps to expedite a
swift resolution so that we can resume our exploration at Kazhiba. In the meantime, we will
launch our plans to work on Mitu, continuing with our Cooperative Exploration Plan with
First Quantum to define potential oxide copper feed sources for Kansanshi . At Dumbwa,
KoBold has been working diligently compiling all available geological data and refining their
work plan. We are excited for KoBold to begin systematic exploration of this large -scale
target.”
Renewal Rejection Explained
Under Zambian mining law, large scale exploration licences are issued for a four -year
period, and may be renewed, on application, for two additional three -year periods. The
Licence was originally issued on March 1, 2017 and subsequently renewed on Febru ary 28,
2021. In the ordinary course of business, the Company filed an application for the renewal
of the Licence on December 1, 2023. The Company understands that the Mining Licencing
Committee, which meets periodically to consider renewal applications, met in June and
rejected the Company’s application. Under Zambian mining law, the Ministry is required to
provide formal notice of any rejection decision directly to renewal applicants together with
the reasons for the rejection decision. By law, applicants then have a period within which to
rectify the application or appeal the decision prior to the final rejection of the renewal
application. In this instance, the decision was published on the Ministry’s website, but no
notice with reasons was provided to the Company.
The Company has received legal advice that until th e formal rejection is received, the
Company retains its rights to the Licence.
The Company has repeatedly sought explanation from the Ministry regarding the rejection.
At this time, the Minis try has not provided any explanation for the rejection, or any formal
notice as required by law. Recently, the Ministry published on its website that a new licence
has been issued over the Licence area to a new entity. The Company intends to vigorously
defend its rights to the Licence and licence renewal and has retained competent Zambian
counsel to protect its legal interests. There is no guarantee that the Company will be
successful. In the interim , the Company has suspended operations in the area covered by
the Licence.
2024 Exploration Plans
On April 23, 2024, the Company announced a Cooperative Exploration Plan with First
Quantum to define oxide copper resources at two targets – Kazhiba and Mitu, in order to
jointly define potential feed sources for First Quantum’s SX/EW oxide copper circuit at the
Kansanshi Mine. Initial plans prioritized Kazhiba based on its close proximity to Kansanshi,
however, Mitu represents the larger of the two targets , with both locations hosting near-
surface oxide copper targets , as well as significant sulphide copper targets which the
Company planned to explore simultaneously. While the issue on Licence 21509 -HQ-LEL is
being addressed, the Company will proceed with planned exploration work at Mitu,
including efforts to define an oxide resource at that target.
The Licen ce issue does not impact the KoBold Metals Company Earn -In Agreement,
announced February 20th , 2024 , to explore the Dumbwa Target . Exploration plans for
Dumbwa will be set out in a separate news release.
Qualified Person: Darin Labrenz, P.Geo., a Qualified Person under NI 43 -101, has reviewed
and approved the technical data and contents of this release.
About Midnight Sun
Midnight Sun is focused on exploring our flagship Solwezi Project, located in Zambia.
Situated in the heart of the Zambia -Congo Copperbelt, the second largest copper
producing region in the world, our property is vast and highly prospective. Our Solwezi
Project is surrounded by world -class producing copper mines, including Africa’s largest
copper mining complex right next door, First Quantum’s Kansanshi Mine. Led by an
experienced geological team with multiple discoveries and mines around the world to their
credit, Midnight Sun intends to find and develop Zambia’s next generational copper
deposit.
ON BEHALF OF THE BOARD OF MIDNIGHT SUN MINING CORP.
Al Fabbro
President & CEO
For Further Information Contact:
Adrian O’Brien
Director of Marketing and Communications
Tel: +1 604 809 6890
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IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS NEW RELEASE.
This news release contains “forward-looking statements” within the meaning of the applicable Canadian
securities legislation that are based on expectations, estimates, assumptions and projections as at the
date of this news release. The information in this news release about the resolution of mineral
exploration licence renewals , timing and ability of the Company and KoBold to obtain the approval of
relevant regulatory bodies , if at a ll; timing of the commencement of the earn- in; the work expenditure
amounts and timing of those expenditures incurred by KoBold , if at all; the transfer of the relevant
property to a joint venture entity, if at all; the respective ownership interests of the Company and KoBold
in the joint venture entity; and any other information herein that is not a historical fact may be “forward
looking statements”. Any statement that involves discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions, future events or performance ( which may , but not
always, include phrases such as “anticipates”, “plans”, “scheduled”, “believed” or “intends” or variations
of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”,
“might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be
forward-looking statements and are intended to identify forward-looking statements.
Although the forward- looking statements contained in this news release are based upon what
management believes, or believed at the time, to be reasonable assumptions, the Company cannot
assure readers that actual results will be consistent with such forward- looking statements, as there may
be other factors that cause results not to be as ant icipated, estimated or intended. Such factors include,
among others, risks relating to the timing and ability of the Company and KoBold to remove conditional
subjects of the Earn-In Agreement, including the ability to obtain and the timing of the approval of
relevant regulatory bodies , if at all; risks relating to property interests; risks related to access to the
project; risks inherent in mineral exploration, including the fact that any particular phase of exploration
may be unsuccessful; the risk that KoBold determines not to proceed with the earn in at any time after
completing the minimum work program, and before having expended the full USD$15 million for the
earn in; geo-political risks; the global economic climate; metal prices; environmental risks; political risks;
and community and non- governmental actions. N either the Company nor any other person assumes
responsibility for the accuracy and completeness of any such forward- looking statements. The Company
does not undertake, and assumes no obligation, to update or revise any such forward-looking statements
or forward-looking information contained herein to reflect new events or circumstances, except as may
be required by law.