VANCOUVER, Jan. 30 /CNW/ - The Company is pleased to announce that it has
concluded an option agreement for its Luhala and Itetemia Projects with a
private United Kingdom based company, Sloane Developments Ltd.
Under the option agreement, Tanzanian Royalty has granted Sloane the
right to earn a beneficial interest ranging from 90 to 100% in ten prospecting
licenses in the Lake Victoria greenstone belt of Tanzania. Six of these
licenses comprise the 76 square kilometres Luhala Project (all 100%) while the
remaining licenses constitute the 46 square kilometres Itetemia Project (all
90%) which is adjacent to Barrick's Bulyanhula gold mine.
The earn-in portion of the agreement includes prescribed annual cash
payments, firm exploration expenditures and a minimum amount of diamond
drilling meterage over the life of the agreement. In addition, Tanzanian
Royalty will receive a sliding scale net smelter royalty for any mineral
discovery that achieves commercial production.
The exploration component of the option agreement calls for a work
commitment of $US1 million within a two-year period of which $400,000 will be
expendable in the first year and the remaining amount in the second. Further
provisions in the agreement call for the completion of a bankable feasibility
study and the announcement of a production decision before the fifth
anniversary of the agreement and the achievement of commercial production
before the seventh anniversary.
Tanzanian Royalty Chairman and CEO, Jim Sinclair, welcomed Sloane as a
"valued addition to our list of high quality exploration partners in
"These are seasoned veterans of the minerals industry whose track records
encompass exploration and discovery right through to mine development and
production," he added.
"The partnership with Sloane will provide us with the opportunity to
realize royalty income from any exploration successes produced under the
agreement, while freeing us up to concentrate our fiscal resources on the
Company's Kigosi Project which although at a relatively early stage of
exploration certainly has the hallmarks of being a significant discovery."
Sloane Developments is a recently-formed, private UK mining company
focused on mineral exploration and development in Tanzania. It was founded by
Christian Schaffalitzky and Richard Speir who both have wide experience
managing mining and exploration projects, especially in Africa.
Mr. Schaffalitzky has over 30 years experience in base and precious
metals, working as both an industry consultant and a promoter. He led the
discovery and development of the Lisheen zinc-lead deposit in Ireland in 1990
and has subsequently been involved with a number of resource companies in
Europe, Africa, Asia and Australia.
He is currently CEO of Eurasia Mining plc, an AIM-quoted UK company
developing precious metals projects in Russia. In addition, he serves as a
director of Petroceltic International plc, an Irish oil and gas company - also
AIM quoted - and Raspadskaya Coal Company, the second largest Russian coking
coal producer. Mr. Schaffalitzky is a founder of the international
consultancy, CSA Group, which he left in 1994.
Richard Speir is an exploration specialist with over 25 years experience
in Tanzania and other countries in Africa. A former consultant with CSA Group,
he has also worked for major international companies, mainly on base and
Apart from working with Tanzanian Royalty, Sloane is also in a joint
venture with another local company, Safari Mining Limited, exploring a
70 kilometre long belt of ultramafic rocks located in central Tanzania, some
80 kilometres north of Dodoma. A number of nickel showings, one with high
grades of platinum group metals, have been identified which have not been
investigated in the last 40 years.
Currently financed by private mineral investors, Sloane expects to list
in the UK in the next few months.
Commenting on the agreement with Tanzanian Royalty, Mr. Schaffalitzky
said: "We are delighted to be joining Jim Sinclair and his team in Tanzania.
We welcome the opportunity to work with them by building on their long
experience on these two projects."
"James E. Sinclair"
James E. Sinclair
Chairman and Chief Executive Officer
The Toronto Stock Exchange and American Stock Exchange have not reviewed
and do not accept responsibility for the adequacy or accuracy of this
Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. We use certain terms on this news release,
such as "measured", "indicated", and "inferred" "resources" that the SEC
guidelines strictly prohibit U.S. registered companies from including in their
filings with the SEC. U.S. Investors are urged to consider closely the
disclosure in our Form 20-F, File No. 0-50634, which may be secured from us,
or from the SEC's website at http://www.sec.gov/edgar.shtml.
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