Tanzanian Royalty Enters Into Contract Negotiations for Mineral Licenses With Company From People's Republic of China
Vancouver, Canada (ots/PRNewswire) - 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 13 Prospecting licenses in Tanzania.
The decision to proceed directly 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 pulled out all the stops to expedite their due diligence on these licenses and they are keen to negotiate contractual arrangements for them while they assess the other licenses that are covered under the LOI."
The 13 licenses include gold properties in the Ushirombo, Lunguya, and Nyanzaga areas of Tanzania and nickel licenses in the Kagera/Kabanga nickel belt, he added.
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's timely acquisition of its diverse asset base in one of the world's great mineral producing regions - along with the political capital it has built up in Tanzania over the years - bodes well for its future," Sinclair commented. "And few would argue with the supposition that the Chinese are the partners of choice in today's minerals industry."
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
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 a more information concerning these risks, uncertainties, and other factors.
ots Originaltext: Tanzanian Royalty Exploration Corporation
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