FOR IMMEDIATE RELEASE
November 26, 1997
ANNOUNCEMENT
Calgary, Alberta: Harry Joujan, President of Raindrop Resources Ltd. (RAP.ASE) is pleased to announce that the Company has entered into a share purchase agreement to acquire all issued and outstanding shares of three privately owned companies in Tanzania operating as Chemical & Mining Supplies Ltd., Resources Development Company Ltd. and Enterprise Diamonds Ltd.
In return for 100% of these companies Raindrop has agreed to issue 1.5 mil common shares and pay US$1,150,000.00 subject to financing arrangements. The primary assets of these companies include four (4) prospecting licenses covering approx. 200km2 collectively and are situated north of Shinyanga and within the Tanganyika Craton. The properties contain eight diamondiferous kimberlites, one known diamondiferous gravel deposit and eleven untested geophysical targets. These properties offer an excellent opportunity for both primary and alluvial diamond development.
The Archean Tanganyika Craton that underlies most of central Tanzania is comprised mainly of granite with lesser areas of metasediments and greenstone belts.
The greenstone belts are composed mainly of mafic volcanics and banded ironstones and are collectively known as the Lake Victoria Gold fields. There has been large-scale organized hard rock mining for more than 100 years. Small-scale alluvial mining has always been important, Recently, the artisanal miners have organized into cooperatives. These miner cooperatives employ more that 100,000 people today.
Diamonds are mined from kimberlite pipes. These mafic volcanic rocks occur in clusters. The clusters of intrusions occur along regional north south block faulting and northeast to southwest transverse cross faulting associated with the East African Rift system.
About 20% of Tanzania's 300 known kimberlite pipes, within the Tanganyika Craton, are diamondiferous. The majority of the pipes are 50 million years old; the same age as the Lac de Gras pipes in Canada's North West Territories.
In 1911, diamonds were discovered in Tanzania. Since then, more than 18 million carats have been produced. Most of the production (>90%) has been from the Mwadui kimberlite. This pipe was discovered in 1941 by
Canadian Dr. John T. Williamson, it was subsequently purchased by De Beers and is still in production today. The Mwadui/New Alamasi kimberlite, at 150 ha, is the largest known economic pipe on earth.
The mining infrastructure and expertise is well developed and is complimented by Tanzania's liberal new mining laws. The new legislation will come into effect in January 1998.
Dr. Ulrich Kretschmar of Kretschmar International Geoscience Incorporation has completed an independent review of all these properties.
The Alberta Stock Exchange neither approves or disapproves of the information contained herein.
For further information contact Harry Joujan at (403) 205-3788 or Fax: (403) 205-3763 or E-mail raindrop@cadvision.com. SEC #82-4565 |
