VANCOUVER, Aug. 24 /CNW/ - Tanzanian Royalty Exploration Corporation
(AMEX: TRE/TSX: TNX) is pleased to announce that it has entered into contract
negotiations with a company from the People's Republic of China (the "PRC
Company") for the remainder of its nickel licenses in the Kagera/Kabanga
nickel belt in Tanzania.
The 12 licenses that are presently subject to contract negotiations
comprise the entire 4,482 square kilometres portfolio of nickel licences held
by Tanzanian Royalty in the Kagera/Kabanga nickel belt.
The decision to enter into contract negotiations for the licenses at this
stage follows the signing of a Letter of Intent (LOI) with the PRC Company in
May 2007. The LOI granted the PRC Company an exclusivity period of 150 days to
evaluate the properties within the context of concluding option agreements
that are acceptable to both parties.
According to Tanzanian Royalty Chairman and CEO, Jim Sinclair, "The
Chinese have moved quickly to expedite their due diligence on these properties
given the highly competitive environment that exists in Tanzania for quality
mineral projects of this nature."
"We have certainly been impressed with their field capabilities and their
obvious determination to acquire and exploit the potential of mineral assets
in Tanzania that serve their national interests."
While there is no guarantee that negotiations between Tanzanian Royalty
and the PRC Company will lead to the signing of any formal contracts, Sinclair
emphasized that the Chinese interest in Tanzania is genuine and reflects the
nation's strategy of securing long term sources of supply for key commodities
such as nickel, copper, gold and other industrial metals. "The Chinese have a
long history in Tanzania but their business priorities have changed in recent
years with industrial commodities leapfrogging to the forefront," he noted.
Tanzanian Royalty Exploration Corporation 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 of Tanzania.
"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: please contact Investor Relations at
1-800-811-3855; Visit our website: www.TanzanianRoyaltyExploration.com