A Canadian mining company has entered into a letter of intent (LOI) with another company to enable it to acquire up to 100% interest in a mining concession at Mazaruni.

Simberi Mining Corporation, in a press release, announced that it has entered into a letter of intent with Lori Energy Inc to enable Simberi to acquire up to a 100% interest in Prospecting Licence: PL/35SE/02/07 called the Kaburi Licence encompassing 6,431 hectares located in the Mazaruni mining district of Guyana.

The Kaburi Licence is located between the Main Kaburi River and West Kaburi River approximately 150 kilometres (km) south-southeast of Georgetown. The property is approximately 35 km northwest of the IAM Gold’s Omai gold project.

The project area is adjacent to and includes part of the Hicks Gold Zone that was explored between 1993 and 1995 by Cathedral Gold Corporation to identify a gold mineralized zone through trenching and drilling.

The gold mineralization occurs in well defined gold rich lenses within shear zones along with quartz, the release said.

It said the parties intend to complete definitive documentation for the transaction after completing due diligence, following which Simberi will acquire a 100% unencumbered interest in the Kaburi Licence from Lori. Under the LOI, Simberi has agreed to pay Cdn$50,000 on or before September 30, 2009 to acquire the property.

The release stated that Guyana is an emerging, politically stable South American country with resource potential in gold, diamonds, bauxite and oil and gas and it has a long history of gold production and new large prospective offshore oil fields are being explored by major international oil and gas companies.

Simberi Mining Corpora-tion is a Canada-based international mineral development company that develops a portfolio of natural resource properties and companies.  Simberi’s main development project is the Kakanda Copper/Cobalt project in the Democratic Republic of the Congo that is held in a joint venture with Gecamines, the Congolese state mining company.

Simberi also has three exploration projects in Australia and an interest in a uranium company that has a number of exploration projects.