Sumo Resources Plc Business Update
14 August 2017 - Sumo Resources Plc Business Update
It is with pleasure that we provide an update of the business activities of Sumo Resources Plc over the past months.
Synopsis of Activities The following is a list of activities completed which are described in more detail further in this release:
The company completed restructuring of its trading operation The company's subsidiary SR Tanmin cancelled the Tshope project SR Tanmin was granted a Gold Trading license in Maniema, DRC SR Tanmin was granted a Tantalite Treatment and Trading license in Maniema, DRC SR Tanmin was granted exploration rights in a concession in Kampene, Maniema, DRC SR Tanmin's applications for exploration rights in six concessions in Maniema, DRC was approved SR Tanmin's application for exploration rights in one concession in Tanganyika, DRC was approved SR Tanmin established a Gold and Tantalite trading office in Kindu, Maniema
Restructuring of Trading Operation The directors decided to close down the Hong Kong trading structure in favour of a trading operation in the United Arab Emirates. As such Sumo Resources FCZ was established in Umm Al Quwain Free Trade Zone. This creates efficiencies with regards to the logistics for future trades with similar taxation implications.
Tshope Project Cancellation In 2016 SR Tanmin entered into a preliminary agreement with Kadi International to form a joint venture to mine in a property in Tshope Province, DRC where Kadi International owned exploitation rights for diamond and gold mining.
After a contracted due diligence process it was decided to cancel the agreement and thus the Tshope project. Factors contributing to the decision were ownership issues within Kadi, outstanding debts and the probability that not all of the debts were declared. As such the risks far outweighed any benefits.
Maniema Trading Operations The company's subsidiary SR Tanmin was granted a Gold Trading License and a Tantalite Treatment and Trading license for the Maniema Province in the Democratic Republic of Congo. The licenses enable SR Tanmin to source Gold and Tantalite from artisanal miners, co-operatives, local sellers and mines. The end product may be exported by SR Tanmin to its international trade partners.
SR Tanmin has established a trading facility in Kindu, Maniema which is the capital of Maniema province. The Gold trading business is expected to commence on 1 October 2017. The Tantalite treatment and trading business will start once SR Tanmin is vetted by the iTSCi. The iTSCi is a non-profit organization that assists companies to track the origin of product through the supply chain from the mines to the end product. Tagging of Tantalite is mandated by the DRC government before it can be exported. Vetting by the iTSCi is a slow process and although we have engaged them since May 2017 it seems that it may not be possible for this process to be completed by the end of 2017.Maniema Exploration Operations Maniema Province is well known for deposits of Gold, Tantalite, Tin and Wolframite. SR Tanmin applied for seven concessions for exploration in the Maniema province after thorough evaluation. All of the seven requests were approved and to date the rights to one concession in the Kampene area of roughly sixteen square kilometers have been granted. We expect the rights for the other six concessions to be granted shortly. Exploration for Gold and Tantalite is intended.
Exploration work is due to start in January of 2018.
Tanganyika Exploration Operations Tanganyika Province in the DRC is known for deposits of Tantalite and Tin. SR Tanmin did extensive evaluation and prospecting work in the northern part of the province over the past years.
In December 2016 an application was submitted for an exploration permit over an area of roughly 200 square kilometers. The area is to the north of Nyunzu and not far from the Tantalite producing pits in Kisengo and Mai-Baridi. The application was approved and we expect the rights to be granted shortly. Exploration for Tantalite is intended.
Exploration work will commence in January 2018.
Summary Overall progress was made on all fronts with the highlight the granting of trading licenses and the establishment of trading and processing facilities in Kindu. This will achieve the stated goal of generating revenue while exploration activities are undertaken.
We look forward to substantial growth in the coming years.Contact: firstname.lastname@example.org +49 211 178 6248
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