Tanzanian Royalty Exploration Corporation (TSX:TNX) (NYSE MKT:TRX)
hereinafter (the "Company") announces that it is not affected by
new laws in Tanzania.
"The new mining laws in Tanzania 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.
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 new laws adopted 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 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 the project
shall be reimbursed out of production. Tanzanian Royalty paid to
the Government of Tanzania US$3,000,000, a non-refundable up front
fee, 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 most recent Canadian National Instrument
43-101 report filed by the Company provides that an economic
analysis has been carried out on the Buckreef Gold Project for a
range of gold prices with $1,250 per ounce selected as the base
case. The analysis demonstrates that the Project is expected
to generate a positive NPV at a 5% discount rate of US $243 million
and a positive IRR of 53.7%.
Based on this economic analysis, the estimated
value of STAMICO's holdings in the Buckreef Project is
substantial. STAMICO acts as agent for the Tanzanian federal
government. The NI 43-101 revealed 1,064,000 ounces of gold to be
mined at the Company's Buckreef Project, which will benefit the
Company and Tanzania.
"We believe the Company is in total compliance
with all new mining standards. The Company was in compliance with
the new laws in Tanzania prior to the adoption of these laws. There
are no outstanding differences or disputes between the government
of Tanzania and the Company. Due to corporate foresight, the
Company's actions and policies were well ahead of the new laws
Tanzania has currently promulgated. The new laws will not impact
our Company. These new laws will impact companies in our industry
who have a history of exploiting Tanzania without benefit to the
nation or it's people. 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. We welcome and look
forward to our continued good relationship with Tanzania, together
with our exciting mining prospects there," stated James E.
Sinclair, Executive Chairman.
For more information and updates, please see the
Company website at:www.tanzanianroyalty.com
Respectfully Submitted, "James E. Sinclair"
James E. SinclairExecutive Chairman
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 Positive
Feasibility Study on Buckreef.
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 Form 20-F Annual Report 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 ResourcesThe 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 Form 20-F Annual Report dated November 25,
2016 and technical reports filed under the Company's name at our
website at: www.TanzanianRoyaltyExploration.com.
Cautionary Note to US Investors
Concerning Estimates of Measured, Indicated and Inferred
ResourcesNote to U.S. Investors. While the terms
"mineral resource", "measured mineral resource," "indicated mineral
resource", and "inferred mineral resource" are recognized and
required by Canadian regulations, they are not defined terms under
standards in the United States and normally are not permitted to be
used in reports and registration statements filed with the
SEC. As such, information contained in this report concerning
descriptions of mineralization and resources under Canadian
standards may not be comparable to similar information made public
by U.S companies in SEC filings. With respect to "indicated
mineral resource" and "inferred mineral resource" there is a great
amount of uncertainty as to their existence and a great uncertainty
as to their economic and legal feasibility. It cannot be
assumed that all or any part of an "indicated mineral resource" or
"inferred mineral resource" will ever be upgraded to a higher
category. Investors are cautioned not to assume that any part
or all mineral deposits in these categories will ever be converted
into reserves.
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.
For further information, please contact Investor Relations:
Michael Porter
Porter, LeVay & Rose
212-564-4700
mike@plrinvest.com
CONNECTICUT OFFICE:
PO Box 577
Sherman, CT
U.S.A. 06784
Phone: 1.844.364.1830
Fax : 1.860.799.0350
www.tanzanianroyalty.com
TORONTO OFFICE:
Bay Adelaide Centre, East Tower
22 Adelaide Street West, Suite 3400
Toronto, Ontario
Canada M5H 4E3
Toll Free: 1.844.364.1830
TRX Gold (AMEX:TRX)
Historical Stock Chart
From Aug 2024 to Sep 2024
TRX Gold (AMEX:TRX)
Historical Stock Chart
From Sep 2023 to Sep 2024