Tan Range and Newmont complete agreements for Tanzanian Gold
Exploration
VANCOUVER, Aug. 23 /CNW/ - Tan Range Exploration Corporation
Alberta Stock Exchange Symbol: TNX
Tan Range Exploration Corporation is pleased to announce that it has
completed a Property Acquisition Agreement, a Share Purchase Option Agreement
and an Exploration Services Agreement with Newmont Overseas Exploration
Limited, a wholly owned subsidiary of Newmont Mining Corporation (NYSE: NEM).
These agreements relate to Newmont having the right to earn up to 70% of Tan
Range's interest in four Tanzanian gold properties; Mnekezi, Mulehe,
Kabahelele, and Luhala. For each individual property, Newmont may earn an
initial 60% interest by the expenditure of US$1.5 million for exploration
within three years for a total of US$6.0 million.
Upon the acquisition of its initial interest in any of the four
properties, Newmont may earn an additional 10% interest in that property by
the completion of a bankable feasibility study within three years.
After the acquisition of its additional interest in any property, Newmont
will have the option to acquire by way of private placement up to 10% of the
then issued and outstanding shares of Tan Range at a price of market less 10%.
Newmont also has agreed that Tan Range personnel will be used for the
completion of exploration work during the earn in period according to the
terms of the Exploration Services Agreement.
In addition to the above, Newmont has made an initial payment of
US$50,000 to Tan Range upon signing of the formal agreement and will make
monthly option payments of US$8,333 during the second year of the agreement
beginning on April 25, 2000, US$12,500 per month during the third year of the
agreement and US$20,833 per month during the fourth year of the agreement.
These agreements are subject to regulatory approvals and have received
the approval of the Board of Directors of Tan Range.
The focus of the Newmont/Tan Range joint venture is the current RAB
drilling program being carried out on the Mnekezi property to locate the
source of a large gold soil anomaly. The Mnekezi property is adjacent to the
Tulawaka property (Pangea) which is known to host an extensive system of gold
mineralization along a structural trend. A reverse circulation drill program
at Tulawaka returned high grade gold intercepts including 39 meters grading
12.7 grams/tonne and 22 meters grading 14.6 grams/tonne.
For related information, including a property map, other news releases
pertaining to Newmont/Tan Range and more information on the Company, please
visit our website at www.tanrange.com
TAN RANGE EXPLORATION CORPORATION
(''signed'')
------------------
Marek J. Kreczmer, M.Sc., P.Eng.
President and Chief Executive Officer
The Alberta Stock Exchange has neither approved nor disapproved of the
information contained herein
-30-
For further information: Investor Relations at 1-800-811-3855,
www.tanrange.com
To request a free copy of this organization's annual report, please go to
www.newswire.ca and click on reports@cnw |
