Ruby Creek Resources, www.rubycreekresources.com – an aggressive exploration and mining firm focused on Tanzania, with substantial holdings already in the Mkuvia and adjacent Kapinga Gold Projects (720 square kilometers total), reported entry into an acquisition agreement today whereby the Company will acquire a 25-year (issued Sept. 2010), 10 sq km (3.86 sq miles) mining license on the Gold Plateau Project.
The Gold Plateau Project is in southern Tanzania, right next to the Mkuvia property, lying on some of the most promising and under-developed mineralization this region has to offer.
Two $1.5M acquisitions have been made by RBYC, and the mining license is a part of the deal:
• The first was for 95% controlling interest in the privately held Gold Standard Tanzania Ltd., owner of the 139 sq km property package of which the 10 sq km license is a part and whose assets also include a Regional Environmental Report on the entire site and two Prospecting License Joint Ventures of 40 and 89 sq km
• The second was for a bevy of mining equipment at the site and in close proximity (Dar es Salaam), which will be strategically beneficial for achieving rapid maximization of production capacity
The Environmental and Sociological Impact Assessment (ESIA) of the 139 sq km property will be especially useful, serving as the basis for a more comprehensive program of ESIA reports on the entire Gold Plateau Project (now consisting of some 332 sq miles or 859 sq km in total).
President of Gold Standard Ltd., Robert Moriarty, praised RBYC and extolled the benefits of cooperatively advancing this rich and vast site towards production goals, citing obvious parallels in operational methodology employed by both companies as a sure sign of success.
President and CEO of RBYC, Robert Slavik, agreed that it was a perfect relationship, expressing a kind of genuine excitement about the future of operations at Gold Plateau that should electrify shareholders. Slavik anticipates mining gold shortly and knows that the regional report data will allow for a rapid increase in the number of licenses on the project.
The conjunction of the first mining license and the pending primary license contract mining agreement is a broad stroke on the canvas, as RBYC paints a masterpiece of a scale in Tanzania.
A summation of costs and liabilities related to the acquisition are as follows:
• The aforementioned acquisition fees, totaling $3M
• Liabilities of roughly $585k
• A cash payment for each agreement of $500k each
• An 18-month convertible debenture on each agreement of $1M each