Option Agreement

RNS Number : 7342M

Obtala Resources PLC

04 February 2009

 



4 February 2009

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

Obtala completes Option Agreement for five additional gold licences in Tanzania in World Class Gold Region

The Board of Obtala Resources plc ('Obtala'), the AIM quoted mineral exploration and development company, is pleased to announce the signing of an Option Agreement with Atlas Africa Limited, a Tanzania registered company over five (5) prospecting licences in Tanzania.

The five prospecting licences, granted for all minerals other than building materials and gemstones, occur in the world renowned Lake Victoria Goldfield of northern Tanzania. The Lake Victoria Goldfield has been recognized as a world-class gold province, with a number of multi-million ounce gold mines in production, operated by international mining houses. 

The five prospecting licences cover a total area of 312.81 km2, bringing Obtala's total gold holdings within the Lake Victoria goldfield to 16 licences totalling 983.44 km2. 

Under the terms of the Option Agreement Obtala will acquire the sole right and option to purchase a one hundred percent (100%) beneficial interest in the licences, within 12 month of signing the Option Agreement, in exchange for either a cash payment or the issuing of common shares, or a combination of both to the equivalent of US$200,000 for each individual licence. We also retain the right to sell or transfer the licences to another party before completion of the option. Obtala will undertake exploration activities on the individual licences at its own expense within 12 months from the date of signing the Option Agreement. 

Frank Scolaro, Chairman of Obtala, commented that 'Tanzania is the third largest gold producer in Africa and we are delighted to have signed the option over these licences in an area well known for gold exploration and production. With the current global financial situation we believe gold to be an important exploration commodity and that these additions to the mineral portfolio will prove immensely beneficial to the strategic creation of shareholder value for the future. Obtala remains fully funded to continue its exploration programme over all its licence areas for 2009 and thereafter' 

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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