Royal Sapphire Corp Announces Acquisition of Tin Asset and Appointment of Mr. William Deluce to its Board of Directors
September 30 2013 - 4:14PM
Access Wire
VANCOUVER, BRITISH COLUMBIA
- ROYAL SAPPHIRE CORP. (TSX VENTURE: RSL)
(the "Company" or "Royal Sapphire") is pleased to
announce that it has entered into an agreement (the "
Agreement") with Afritin Resources
to acquire a 100% undivided interest in the Rurembo property
license; a 1000 square kilometer property containing Tin, Tungsten
and Tantalum located in the Muhanga, Ngororero, and Kamonyi
districts of Rwanda. The license surrounds Gatumba Mining
Concession which is the largest colonial mine in Rwanda. Within the
claim boundaries there are over 250 artisanal pits that have been
mapped and identified. A number of highly prospective pegmatite
dyke swarms from the Gatumba Mine extend directly onto the
property. Large placer deposits coupled with these dyke swarms
allow for the potential to immediately establish a mining operation
to generate short-term cash flow.
This acquisition will
be the first step in building a portfolio of high quality tin,
tungsten and tantalum assets around the world. In addition to the
property acquisition, Mr. William S. Deluce will be appointed to
the Royal Sapphire Board of Directors.
Mr. Deluce, B.Sc. has
over 30 years of international business experience and expertise
operating in challenging jurisdictions including extensive
experience securing and funding resource projects in more than 20
countries in Africa. He has been assisting the Government of Rwanda
in assessing development opportunities in a variety of sectors
including airline, textile, coffee, tea and power generation. Mr.
Deluce founded Austin Airways, Air Ontario and Air Alliance in
Canada, as well as Global Airlift in Kenya and South African
Express and he served as a director of Canadian Tire Corporation,
Canada 3000 Airlines and a handful of junior exploration companies
"Rwanda provides a wonderful opportunity to explore for mineral
resources in a country that is secure with good infrastructure and
a very supportive government regime. I am very excited to be
working in a country with so much natural resource potential." Mr.
Deluce stated.
Balbir Johal,
Director of Royal Sapphire commented, "Management of Royal Sapphire
has thoroughly researched various mining commodities over the last
year and has concluded that the base metal tin is the most
undervalued and underappreciated base metal. The addition of Mr.
Deluce and his proven track record of securing, exploring and
developing international mining projects will greatly assist the
Company to build a strong portfolio of world class tin
assets."
THE TIN OPPORTUNITY
Tin is a ubiquitous
metal that occurs in everyday products such as cans, electronics,
containers and most machinery but it is experiencing its strongest
growth in personal electronics sector. The increase in personal
electronic devices is expected to increase from 12.5 billion in
2010 to 50 billion by 2020 with each personal device using
approximately 1 gram of Tin. Tin has replaced lead as the preferred
and more environmentally friendly solder used in electronic
devices.
The current price of
tin is approximately $23,000 per tonne up from $21,200 at the
beginning of September. Some analysts are forecasting a 22%
increase in the tin price to $28,000 per tonne in 2014.
TERMS OF THE
AGREEMENT
Under the agreement
Royal Sapphire Corp will obtain a 100% undivided interest in the
Rurembo property license, located in the Muhanga, Ngororero, and
Kamonyi districts of Rwanda. In consideration for the purchase of
the agreement, Afritin shall receive 6,666,667 Units valued at
$0.15 per Unit. Each Unit consists of one common share and one
common share purchase (a "Warrant"). Each whole Warrant entitles
the holder to acquire one common share for $0.20 for a period of
three years after issuance of the Units. The terms are as
follows:
-$25,000 cash payment
and 3,000,000 Units upon the execution of the agreement;
and
-3,666,667 Units upon
the earlier of (i) conversion of the licence from a prospecting to
exploration licence, and (ii) one year from the date of execution
of the agreement.
The issuance of all
common shares is subject to a statutory four-month hold period and
conditioned upon the approval of any required governmental or
regulatory authority, including the Toronto Venture Stock
Exchange.
A finder's fee in
accordance with Exchange policy and subject to regulatory approval
is payable to Lions Edge Capital.
We seek safe harbor.
On behalf of the Board,
Royal Sapphire
Corporation
Balbir Johal, LL.B.
Director
Jo
Shearer, Director of the
Company and a qualified person for the purposes of NI 43-101, has
reviewed and approved the preparation of the technical information
in this news release.
Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Caution
concerning forward-looking information
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities laws. This information and statements address future
activities, events, plans, developments and projections. All
statements, other than statements of historical fact, constitute
forward-looking statements or forward-looking information. Such
forward-looking information and statements are frequently
identified by words such as "may," "will," "should," "anticipate,"
"plan," "expect," "believe," "estimate," "intend" and similar
terminology, and reflect assumptions, estimates, opinions and
analysis made by management of Royal Sapphire Corp. in light of its
experience, current conditions, expectations of future developments
and other factors which it believes to be reasonable and relevant.
Forward-looking information and statements involve known and
unknown risks and uncertainties that may cause Royal Sapphire's
actual results, performance and achievements to differ materially
from those expressed or implied by the forward-looking information
and statements and accordingly, undue reliance should not be placed
thereon.
Risks and uncertainties that may cause actual results to vary
include but are not limited to the availability of financing;
fluctuations in commodity prices; changes to and compliance with
applicable laws and regulations, including environmental laws and
obtaining requisite permits; political, economic and other risks;
as well as other risks and uncertainties which are more fully
described in our annual and quarterly Management's Discussion and
Analysis and in other filings made by us with Canadian securities
regulatory authorities and available at www.sedar.com. Royal Sapphire Corp. disclaims any
obligation to update or revise any forward-looking information or
statements except as may be required.
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