Monday August 23, 6:35 pm Eastern Time
Company Press Release
SOURCE: Tan Range Exploration Corporation
Tan Range and Newmont complete agreements for Tanzanian Gold Exploration
VANCOUVER, Aug. 23 /CNW-PRN/ - 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 - news). 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')
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Marek J. Kreczmer, M.Sc., P.Eng.
President and Chief Executive Officer |
