Ruby Creek Resources, Inc., an exploration and mining company, now has rights to an additional 340 Sq Km in one of Tanzania’s largest alluvial Goldfields. The Company already has a majority of its holdings in Tanzania. Should Ruby Creek decide to exercise its right, the new property would be acquired at the purchase price of $500,000.
The property is located directly adjacent and south of the Ruby Creek Mkuvia Gold Project in southern Tanzania. Payments for the property are set up to be staged, first payment of $250,000 upon purchase and remaining $250,000 will be made when the first mining license is issued.
Tanzania has vast amounts of natural resources including gold, diamonds, coal, iron ore, uranium, nickel, chrome, tin, platinum, coltan, niobium and other minerals. It is the third-largest producer of gold in Africa after South Africa and Ghana.
Mr. Robert Slavik, President and CEO of Ruby Creek Resources, said, “We believe that there are strong indications gold mineralization on our Mkuvia Gold Project extends in a southern trend into the Kapinga property. The purchase of the Kapinga property, combined with our Mkuvia Project, will double our mineral and mining rights in the area to a total of 720 sq km. We look forward to an aggressive exploration program over the next six months on the Kapinga.”
If Ruby Creek Resources, Inc. exercises its option, the Kapinga property will be transferred into a newly formed joint venture company, Ruby Creek Gold (Tanzania) Limited. Ruby Creek will own 85% of the joint venture, Mr. Kapinga 10% and other parties 5%.
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