TORONTO, Aug. 11, 2017 (GLOBE NEWSWIRE) -- 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
