HomeEast AfricaObtala Resources to explore in Tanzania

Obtala Resources to explore in Tanzania

Mwanza, in the Lake
Victoria Goldfield,
where Obtala will
be exploring for gold
London, England — MININGREVIEW.COM — 04 February 2009 – Obtala Resources plc – the AIM-listed mineral exploration and development company – has signed  an option agreement with Tanzanian-registered Atlas Africa Limited for five prospecting licences in the East African country.

A statement released here revealed that the five prospecting licences – granted for all minerals other than building materials and gemstones – occurred in the world renowned Lake Victoria Goldfield of northern Tanzania. The Lake Victoria Goldfield is recognised as a world-class gold province, with a number of productive multi-million-ounce gold mines operated by international mining houses.

The five prospecting licences cover a total area of 312.81 squ km, bringing Obtala’s total gold holdings within the Lake Victoria goldfield to 16 licences totalling 983.44 squ km.

The statement explained that, in terms of the option agreement Obtala would acquire the sole right and option to purchase a 100% beneficial interest in the licences within 12 months of signing the option agreement, in exchange for either a cash payment or the issuing of common shares, or a combination of both, to the equivalent of US$200 000 (R2 million) for each individual licence. It had also retained the right to sell or transfer the licences to another party before completion of the option. Obtala would undertake exploration activities on the individual licences at its own expense within 12 months of the date of signing.

Obtala chairman Frank Scolaro commented: “Tanzania is the third largest gold producer in Africa, and we are delighted to have signed the option over these licences in an area well known for gold exploration and production. With the current global financial situation we believe gold to be an important exploration commodity, and that these additions to our mineral portfolio will prove immensely beneficial to the strategic creation of shareholder value for the future,” he added.

“Obtala remains fully funded to continue its exploration programme over all its licence areas for 2009 and thereafter,” he concluded.