Obtala Completes Option Agree

RNS Number : 7990O

Obtala Resources PLC

13 March 2009

 



13 March 2009

OBTALA RESOURCES PLC ('Obtala' or the 'Company')

Obtala Completes Option Agreement with Gemstones of Africa (GOA.L) AIM

The Board of Obtala Resources, the AIM quoted mineral exploration and development company, is pleased to announce the signing of an Option Agreement with Gemstones of Africa PLC ('GOA') where GOA has the exclusive right to explore and mine for gemstones on six (6) mining licences and one (1) prospecting licence in Tanzania that are currently held by Obtala. 

The six mining licences, granted for gemstones, occur in the Manyara area of Tanzania, adjacent to Lake Manyara. The Manyara area is known for a variety of gemstones including emeralds, alexandrite, ruby, garnet and spinet. These mining licences are contiguous covering a total area of 6km2. The prospecting licence is located at Matombo, in the Morogoro District, an area known for hosting ruby and other gemstones.

Under the terms of the Option Agreement Gemstones of Africa PLC will acquire the sole right and option to purchase an initial twelve and a half percent (12.5%) beneficial interest in the licences in exchange for issuing common shares the equivalent of five per cent (5%) of Gemstones of Africa's issued share capital to Obtala (Option 1), totalling 71,428,571 shares. This equity will be placed in Obtala treasury, equating to a value of £450,000.

If within 24 months of the completion of Option 1 GOA have incurred exploration expenditures in the aggregate amount of not less than US$75,000, then GOA are further granted by Obtala the sole and exclusive right to a further additional twelve and a half percent (12.5%) beneficial interest in the Licences (totalling 25%). 

Frank Scolaro, Chairman of Obtala, commented that 'I believe this agreement with Gemstones of Africa to progress and develop our emerald licences further enhances the value of our assets in Tanzania. Importantly, the deal complements the exploration activity currently being carried out by Obtala and allows our Company to benefit from the expertise offered by the GOA team to bring these assets into production.'

Contact:

Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.co.uk	[phone]
Obtala Resources plc
Ray Zimmerman/Jonathan Evans	[phone]
Zimmerman Adams International Ltd - Nominated Adviser and Broker

 

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