TORONTO, July 5, 2017 /CNW/ - Tanzanian Royalty Exploration Corporation (hereinafter, the "Company" or "Tanzanian Royalty") (TSX: TNX) (NYSE MKT: TRX) announces that it is not effected by legislative trends in Tanzania.
Jim Sinclair co-authored a book titled "BOOM," written in the 1990s with Mr. F. Vogl, former Director of Communications for the World Bank. "Boom" outlines the authors' prediction for the economic development of China, Tanzania and India as those countries move into the modern Global economy. Many of the legislative changes presently proposed in Tanzania (and elsewhere) were outlined in the book. The authors' premise, which is being borne out in present legislative trends, states that to participate in the development of a foreign economy investing companies must enter into mutually beneficial contracts.
"The proposed changes appear to be an action to gain a fair share of the financial rewards for the people and nation of Tanzania while still providing incentives to the investors. The proposed legislation is not nationalization," stated James E. Sinclair, Executive Chairman.
The Company executed a joint venture contract granting 45% for STAMICO, the State Mining Company, and 55% for the Company as investor. The Company carried all the costs for the Buckreef Project up front. These front end costs of production shall be reimbursed out of production.
Tanzanian Royalty paid US$3,000,000, non-refundable up front, for the privilege of operating in Tanzania.
Public Companies are required to comply with reporting regulations. Reporting is necessary for transparency. Reporting transparency is required not only for all exploration results but also for all economic and mineral information published on the Canadian and USA government regulatory sites, SEDAR & EDGAR.
To date, the Company has invested Cdn. $21,981,125 in the Buckreef Gold Project.
The value of the Buckreef project and Stamico's interest has been significantly improved as outlined in the National Instrument 43-101 Report filed on SEDAR and Edgar and is available by hyperlink from the Company's website at http://www.tanzanianroyalty.com/.
"We believe the Company is in total compliance with all mining standards. Any issues of the past were settled and resolved. There are no outstanding differences or disputes between the government of Tanzania and the Company. Our arrangement with the Tanzanian government should be a role model for the entire industry. We also take great comfort in the various economic and investor protection Treaties in place between Tanzania and Canada," Sinclair concluded.
ABOUT TANZANIAN ROYALTY EXPLORATION CORPORATION:
Tanzanian Royalty Exploration Corporation is a mineral resource company, which engages in the acquisition, exploration and extraction of gold and other natural resources in the United Republic of Tanzania, Africa. The Company, after successfully exploring for Gold has identified three development projects, Buckreef, Kigosi, and Itetemia. In early 2016 in conjunction with our first gold pour, the Company was deemed a commercial gold producer by the Tanzanian Government. The Company is presently focused on its Buckreef Gold Project located in North central Tanzania.
James E. Sinclair
The Toronto Stock Exchange and NYSE Amex Equities have not reviewed and do not accept responsibility for the adequacy or accuracy of this release
Cautionary Note Regarding Forward-looking Statements
Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified using words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited to the mineable ounces of gold on the Buckreef Project; the life of mine at the Buckreef Project, estimated capital costs, anticipated grades and recoveries, results of future exploration work, expected net present value, future operating costs, plant and pit construction and design parameters, as well as other anticipated outcomes set forth in the forth in the Company's Mining Reserve Estimate and Economic Feasibility Study dated effective April 27, 2017.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form 20-F dated November 25, 2016.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.
Cautionary Note Regarding Mineral Reserves and Mineral Resources
The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this release are Canadian mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities Exchange Commission ("SEC") Guide 7. In the United States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made.
The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", "Inferred Mineral Resource" used in this release are Canadian mining terms as defined in accordance with National Instruction 43-101 – Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
For a detailed discussion of Buckreef resource and reserve estimates and related matters see the Company's reports, including the Annual Information Form and Form 20-F dated November 25, 2016 and technical reports filed under the Company's name at our website at: http://www.tanzanianroyalty.com/.
SOURCE Tanzanian Royalty Exploration Corporation
For further information: Tanzanian Royalty Exploration Corporation, Investor Relations: Michael Porter, Porter, LeVay & Rose, 212-564-4700, [email protected]