Mukuba announces closing of unit offering, share compensation payments, redemption of outstanding debentures and appointment of new CFO

TORONTO, Sept. 12, 2012 /CNW/ - Mukuba Resources Limited (TSX-V:MKU) ("Mukuba" or the "Company") is pleased to announce that it has closed a substantial portion of its previously announced private placement of 12,500,000 units (the "Units") at a subscription price of $0.12 per Unit (the "Offering").  Today the Company issued 10,835,000 Units for aggregate proceeds of approximately $1,300,000 and has accepted subscriptions for the remaining 1,665,000 Units for aggregate proceeds of approximately $200,000. The debentures previously issued as part of the Offering and announced on August 28, 2012 were automatically converted into 2,083,333 Units (which are included in the 10,835,000 Units issued today and described above). The securities issued as part of the Offering (including the securities issued as finders' fees) may not be traded before January 13, 2013.

Each Unit consists of one common share and one common share purchase warrant (each a "Warrant") of the Company entitling the holder thereof, during a period of 24 months from the date hereof, to purchase one of the Company's common shares at an exercise price of $0.16 per common share.

The Company paid aggregate cash commissions of $75,000 and issued a total of 1,250,000 warrants as finders' fees in connection with the Offering. Each finder's fee warrant entitles the holder to purchase one common share at $0.16 exercisable for 24 months.

Mukuba also announces that it intends to issue 416,666 common shares to each of Mr. John Hawkrigg, Mr. Martin Horgan, Mr. Danny Keating, Mr. Michael Smyth, all directors of Mukuba and Mr. Kelly Ehler, President and Chief Executive Officer of Mukuba in satisfaction of the previously announced compensation payments in lieu of fees and services rendered to the Company (the "Share Compensation Payments") approved by shareholders of the Company on August 30, 2012, subject to final acceptance by the TSX Venture Exchange (the "Exchange").

Mukuba would also like to announce that it is exercising its right to redeem its 10% convertible debentures due April 17, 2013 (the "Debentures") in accordance with the terms of the Debentures for a redemption price of 100% of the $443,000 principal amount plus accrued interest (the "Debenture Redemption"). $50,000 of the redemption price will be paid in cash and the remainder (including accrued interest) will be paid by issuing common shares valued at 95% of the volume weighted average trading price for the 20 consecutive trading days ending five trading days prior to the redemption date. The Company intends to set the redemption date as September 19, 2012 and issue common shares in connection with the Debenture Redemption as soon as practicable thereafter, subject to acceptance by the Exchange.

The Company is also pleased to announce that Mr. Dan Crandall has been appointed as Chief Financial Officer of the Company, subject to acceptance by the Exchange.

Mr. Crandall is a Chartered Accountant and has an Honours Bachelor of Accounting (Co-op) degree from Brock University. In addition to acting as the Company's Chief Financial Officer, Mr. Crandall is a Manager at Marrelli Support Services Inc., specializing in accounting, regulatory compliance and investment based services to numerous issuers on the TSX and TSX-Venture exchanges. Previously Mr. Crandall was a Manager at Collins Barrow Toronto LLP, a public accounting firm where he worked for over 5 years. In connection with Mr. Crandall's appointment, the Company intends to issue 50,000 stock options to Mr. Crandall having an exercise price of $0.12.

Mr. Crandall replaces Kyle Appleby as CFO, who has resigned effective immediately. The directors would like to express their appreciation to Mr. Appleby for his contribution and past service to the Company.

The closing of the Offering, the Share Compensation Payments, the Debenture Redemption and the appointment of Mr. Crandall as CFO (including the issuance of stock options to Mr. Crandall) are all subject to final acceptance by the Exchange.

About the Company

Mukuba is a Canadian mining company focused on the exploration and development of certain African base metal assets alone and through a joint venture partner. These assets include a 100% interest in the Northcore Project, which is licensed for both copper and cobalt and encompasses approximately 2,265 square km of geologically prospective ground in the Central African Copperbelt region of Zambia. Mukuba is also a party to a joint venture with Benzu Resources Limited to explore and develop a copper and base metals project in the Democratic Republic of the Congo.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future business and planned activities, including matters relating to the Offering. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

SOURCE: Mukuba Resources Limited

Kelly Ehler, interim President and CEO

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