QualityStocks would like to highlight Ruby Creek Resources, Inc. (OTCBB: RBYC). The Company operates in Tanzania through its subsidiaries, Ruby Creek Gold (Tanzania) Limited and Ruby Creek Resources (Tanzania) Limited. Ruby Creek is the operator of the Tanzania Gold Plateau Project, establishing operations and infrastructure, along with the permitting process in support of the full development and commencement of gold mining operations on the Project.
In the company’s news Friday,
Ruby Creek Resources reported that a new agreement was reached for the purchase of prospecting rights to a promising piece of land adjacent to the Gold Plateau (southern/eastern sides) called the Kapinga property.
President and CEO of RBYC, Robert Slavik, said that the Company’s geological team indicated an extension of gold showings to the south and east of Gold Plateau and that this acquisition was beneficial both to the Company and to the Kapinga family, who will benefit greatly by obtaining an equity stake.
Currently $75k has been paid by RBYC and the Company has received transfer of prospecting licenses for the initial 334 sq km parcel. The Company intends to pay another $30k this week, with the $50k balance and issuance of 75k shares pending transfer completion of remaining licenses.
This agreement appends a previous agreement (announced Sept. 10, 2010), sweetening the deal for RBYC to take charge of development:
• Property size increased by some 15 sq km (to roughly 350 sq km) with addition of the key, strategic block of acreage (held in 2 prospecting licenses) south of the Gold Plateau camp
• Overall ownership by RBYC increased to 100%
• Purchase price down to $155k and 75k shares from the previously reported $500k, with a finder’s fee of $50k and 50k shares
• Mining license payments modified from long-term liability to contingent liability; if a mining license is granted on any Kapinga property, it will trigger a one-time $100k and 75k share fee for RBYC payable with 30 days of the issuance of said license, and requiring another $100k in equity or cash within 180 days
This move solidifies an already strong acreage position in Tanzania for RBYC, as gold continues to trend well upwards of $1820 an ounce amid a choppy weather forecast for global financial markets. Due to Tanzania’s favorable stance on mining and the way the government tends to embrace mineral development initiatives, the Company has quite a little East-African success story on its hands with regional access to gold-hungry markets like India and China.
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