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April 21 /PRNewswire/ - Banro Corporation ("Banro" or the "Company")
(NYSE AMEX - "BAA"; TSX - "BAA")
is pleased to announce that it has signed a non-binding memorandum of understanding (the "MOU") with China Gold International Resources Corporation Limited ("China Gold International") to negotiate a proposed joint venture transaction. The MOU provides that the parties intend to cooperate on the development of Banro's Twangiza property, including the proposed Phase 2 mine and the related proposed hydro power project. The MOU also provides that the parties intend to extend the cooperation to Banro's other properties located along the Twangiza-Namoya gold belt in the
Democratic Republic of the Congo (the "DRC").
The MOU still represents an early stage of discussions between the parties, with a definitive agreement providing for the specific transaction structure and other terms still to be negotiated by the parties. The MOU does not create an obligation on the part of either party to consummate any transaction. There is no assurance that any transaction will be consummated.
While Banro has sufficient funds to develop the Twangiza Phase 1 mine, the Company believes that a potential partnership would fast-track development of all of Banro's properties located along the Twangiza-Namoya gold belt.
China Gold International is a TSX and
Hong Kong listed mining company trading under the symbol CGG on the TSX and under stock code 2099 on the Hong Kong Stock Exchange. China Gold International acts as
China National Gold's international vehicle.
China National Gold, a Chinese state-owned enterprise and the largest gold producer in China, owns approximately 39.3% of the outstanding shares of China Gold International.
Banro is a Canadian-based gold exploration and development company focused on the development of four major, wholly-owned gold projects, each with mining licenses, along the 210 kilometre-long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the DRC. Led by a proven management team with extensive gold and African experience, Banro is constructing "Phase 1" of its flagship Twangiza project. Banro's strategy is to unlock shareholder value by increasing and developing its significant gold assets in a socially and environmentally responsible manner.