Orezone Gold Corporation press release
Tanzanian Royalty Enters Into Management Services Agreement With Sloane Developments For Prospecting Licenses In Tanzania
TSX - Toronto Stock Exchange · Gold · Silver · Canada
Trade Symbol:
TSX: TNX
AMEX: TRE
VANCOUVER, May 30 /CNW/ - The Company announces that it has entered into a Management Services Agreement with Sloane Developments which holds the right to earn a beneficial interest ranging from 90 to 100% in ten prospecting licenses held by Tanzanian Royalty in the Lake Victoria greenstone belt of Tanzania.
Under the Management Services Agreement, a wholly-owned subsidiary of Tanzanian Royalty will carry out field and exploration work on the Kisunge and Shilalo Hills targets within the Luhala Project Area and similar work at the Golden Horseshoe Reef Project.
The majority of the exploration work will consist of Reverse Circulation (RC) and diamond drilling along with limited ground geophysics. In addition, Tanzanian Royalty has agreed to assist with grassroots exploration on other licenses in the agreement subject to the availability of staff and equipment.
The Management Services Agreement includes an administration fee on pre-defined exploration and related costs covered by the agreement, which is scheduled to run for a one year period.
The earn-in portion of the previously announced option agreement with Sloane (See Jan. 30, 2007 News Release) includes prescribed annual cash payments, firm exploration expenditures and a minimum amount of diamond drilling 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 with Sloane 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 option 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.
Respectfully Submitted,
"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
release.
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 more information concerning these risks, uncertainties, and other factors.