VANCOUVER, June 5 /CNW/ - Tanzanian Royalty Exploration (AMEX: TRE/TSX:
TNX) ("TRE") is pleased to announce that it has signed a letter of intent with
a company from the People's Republic of China (the "PRC company") to enter
into negotiations with a view to concluding a definitive option agreement
providing for the exploration, development and production of mineral products
from a portfolio of properties held by TRE in the Republic of Tanzania.
The PRC company was approved by the China-Africa Business Council whose
President, the Hon. Minister Hu Deping, witnessed the signing.
Following a series of preliminary discussions that culminated in high
level meetings in Beijing, China between Tanzanian Royalty Chairman and CEO,
James E. Sinclair and executives from the PRC company, TRE granted the company
an exclusivity period of 150 days to evaluate the properties in question
within the context of concluding an option agreement acceptable to both
Any definitive agreement with the PRC company would cover properties held
by TRE that are currently not the subject of option agreements with other
parties. The licenses under consideration for exploration and production of
mineral products will include but not be limited to nickel, gold and diamonds.
During the exclusivity period, TRE has agreed not to solicit or engage in
negotiations, or enter into any agreement or understanding with any third
party regarding the granting of option rights in connection with nickel
mineral products from the Kabanga Nickel Belt or any other nickel-prospective
areas held by TRE in Tanzania. With respect to mineral products other than
nickel, TRE has agreed to grant the company the right of first offer to enter
into definitive agreements under similar commercial terms and conditions if
any third party proposes to enter into a definitive agreement with TRE to
explore, develop and produce such mineral products.
The letter of intent is a non-binding proposal with respect to the basis
upon which the parties intend to enter into negotiations, and the parties are
not legally bound to conclude any transaction in connection with the
properties unless and until they sign a binding Definitive Agreement.
In addition to the above, TRE and the PRC company have both expressed an
interest in jointly pursuing other minerals-related opportunities in Tanzania,
including the acquisition of new licenses. At some point, both parties have
also agreed to actively consider cooperative opportunities in capital markets
as well as cross-board representation possibilities.
Tanzanian Royalty Exploration is a unique, publicly-traded, financial
minerals exploration company whose business strategy is to develop royalty
income under partnership arrangements from its world class gold, diamond and
nickel assets in the Lake Victoria Greenstone and Kabanga/Kagera Nickel Belts
"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.
Certain information presented in this release may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are based on
numerous assumptions, and involve known and unknown risks, uncertainties and
other factors, including risks inherent in mineral exploration and
development, which may cause the actual results, performance, or achievements
of the Company to be materially different from any projected future results,
performance, or achievements expressed or implied by such forward-looking
statements. Investors are referred to our description of the risk factors
affecting the Company, as contained in our Form 20-F, File No. 0-50634, for a
more information concerning these risks, uncertainties, and other factors.
For further information:
For further information: Investor Relations at 1-800-811-3855, Visit our