Lake Victoria Mining Company, Inc. (OTCBB:LVCA) (“Lake
Victoria”) is pleased to announce that Lake Victoria and
Otterburn Ventures Inc. (CNSX:OTB)(“Otterburn”) have entered
into four option agreements (collectively the “Agreements”),
pursuant to which Lake Victoria has granted Otterburn the right to
acquire up to an undivided 70% interest (the “Options”) in
and to certain primary mining licenses and prospecting licenses
owned by Lake Victoria known as the Singida Gold Project, North
Mara Gold Project, Kalemela Gold Project and Geita Gold Project
(collectively the “Properties”).
The Properties are located in the gold producing Lake Victoria
Greenstone Belt in Tanzania, East Africa and cover approximately
623 square kilometers. All are situated in highly prospective
geological environments for Archaean-hosted gold mineralization and
have been explored to degrees varying from surface prospecting,
geochemistry and geophysics to programs of significant drilling. In
particular, the Singida gold prospect has undergone significant
reverse circulation drilling by Lake Victoria and has resulted in
the definition of numerous gold-bearing targets for follow-up
drilling, currently underway.
Tanzania is Africa’s third largest gold producer. Well-known
gold mining companies with producing gold mines in Tanzania include
Barrick (with gold mines at North Mara, Bulyanhulu, Tulawaka and
Buzwagi) and Anglo Gold (which operates the Geita Mine).
Singida Gold Project
The Singida Gold Project consists of 60 primary mining licenses
totaling 4.71 square kilometers located 90 kilometers
south-southeast of Singida, Tanzania. Notable results from the
October 2010, drill program included: 13.91 g/t Au over 4
meters; 16.80g/t Au over 2 meters; 23.6g/t Au over 1 meter.
Lake Victoria has commenced, in 2011, the second round of Reverse
Circulation drilling at its Singida Gold Project in Tanzania. This
program follows the initial +6000 meter drill program undertaken in
October 2010 in which five exploration targets, defined by
artisanal gold mines and prospects, were tested by reverse
circulation drilling along the NW-SE trending Singida shear zone
along a strike length of over 5 kilometers.
Under the terms of the Singida Agreement, Otterburn may earn an
initial undivided 51% interest in the Singida Gold Project by
paying to Lake Victoria, an aggregate of US$400,770, with US$25,000
payable on May 13, 2011 (the “Singida Deposit”) an
additional US$275,770 payable by May 20, 2011, an additional
US$50,000 payable on May 20, 2012 and an additional US$50,000
payable on May 20, 2013. Otterburn has also agreed to issue to Lake
Victoria an aggregate of 2,200,000 common shares of Otterburn, with
1,100,000 common shares issuable on May 20, 2011, an additional
550,000 common shares on May 20, 2012 and an additional 550,000
common shares issuable on May 20, 2013. Otterburn has also agreed
to fund aggregate expenditures of US$4,500,000 on the Singida Gold
Project, with US$750,000 to be funded by October 17, 2011, an
additional US$750,000 to be funded by May 20, 2012, an additional
US$1,500,000 to be funded by May 20, 2013 and an additional
US$1,500,000 to be funded by May 20, 2014. Otterburn has also
agreed to complete a preliminary economic assessment on the Singida
Gold Project and all costs associated with such assessment will be
included in the above work expenditures. Otterburn will also pay
US$646,030 on August 9, 2011 and an additional US$4,247,100 on
August 2, 2013 to certain underlying owners of the primary mining
licenses. Upon the completion of the above payments, issuances and
funding, Otterburn will hold an undivided 51% interest in the
Singida Gold Project.
Under the terms of the Singida Agreement, Otterburn then may
earn an additional undivided 19% interest (for a total undivided
interest of 70%) in the Singida Gold Project by issuing to Lake
Victoria 1,000,000 common shares of Otterburn on May 20, 2017 and
funding aggregate expenditures of US$750,000 on the Singida Gold
Project, with US$250,000 to be funded by May 20, 2015, an
additional US$250,000 to be funded by May 20, 2016 and an
additional $US250,000 to be funded by May 20, 2017. Otterburn has
also agreed to complete a pre-feasibility report on the Singida
Gold Project and all costs associated with such assessment will not
be included in the above work expenditures. Upon the completion of
the above payments, issuances and funding, Otterburn will hold an
undivided 70% interest in the Singida Gold Project.
North Mara Gold Project
The North Mara Gold Projects lie within the eastern extension of
the Lake Victoria Greenstone Belt near the border with Kenya, near
Barrick’s North Mara Mine. The North Mara Gold Project covers
approximately 387.44 square kilometers.
Under the terms of the North Mara Agreement, Otterburn may earn
an undivided 70% interest in the North Mara Gold Project by paying
to Lake Victoria an aggregate of US$212,015, with US$20,000 payable
on May 13, 2011 (the “North Mara Deposit”), an additional
US$72,015 payable on May 20, 2011, an additional US$60,000 payable
on May 20, 2012 and an additional US$60,000 payable on May 20,
2013. Otterburn has also agreed to issue to Lake Victoria an
aggregate of 900,000 common shares of Otterburn, with 500,000
common shares issuable on May 20, 2011, an additional 200,000
common shares issuable on May 20, 2012 and an additional 200,000
common shares on May 20, 2013. Otterburn has also agreed to fund
aggregate expenditures of US$1,850,000 on the North Mara Gold
Project, with US$250,000 to be funded by October 17, 2011, an
additional US$600,000 to be funded by May 20, 2012, an additional
US$500,000 to be funded by May 20, 2013 and an additional
US$500,000 to be funded by May 20, 2014. Otterburn has also agreed
to complete a preliminary economic assessment on the North Mara
Gold Project and all costs associated with such assessment will be
included in the above work expenditures. Upon the completion of the
above payments, issuances and funding, Otterburn will hold an
undivided 70% interest in the North Mara Gold Project.
Kalemela Gold Project
The Kalemela Gold project, located about two hours drive over a
paved highway northeast of the city of Mwanza, consists of six
contiguous prospecting licenses covering about 189.24 square
kilometers of greenstone belt geology.
Under the terms of the Kalemela Agreement, Otterburn may earn an
undivided 70% interest in the Kalemela Gold Project by paying to
Lake Victoria an aggregate of US$171,898, with US$20,000 payable on
May 13, 2011 (the “Kalemela Deposit”), an additional
US$41,898 payable on May 20, 2011, an additional US$50,000 payable
on May 20, 2012 and an additional US$60,000 payable on May 20,
2013. Otterburn has also agreed to issue to Lake Victoria an
aggregate of 600,000 common shares of Otterburn, with 300,000
common shares issuable on May 20, 2011, an additional 150,000
common shares issuable on May 20, 2012 and an additional 150,000
common shares on May 20, 2013. Otterburn has also agreed to fund
aggregate expenditures of US$1,350,000 on the Kalemela Gold
Project, with US$100,000 to be funded by October 17, 2011, an
additional US$250,000 to be funded by May 20, 2012, an additional
US$500,000 to be funded by May 20, 2013 and an additional
US$500,000 to be funded by May 20, 2014. Otterburn has also agreed
to complete a preliminary economic assessment on the Kalemela Gold
Project and all costs associated with such assessment will be
included in the above work expenditures. Upon the completion of the
above payments, issuances and funding, Otterburn will hold an
undivided 70% interest in the Kalemela Gold Project.
Geita Gold Project
The Geita Gold Project is approximately six kilometers west of
the town of Geita, about 90 kilometers west of the city of Mwanza,
and about 300 meters south of AngloGold Ashanti’s major open pit
Geita Gold Mine. The Geita Gold Project covers approximately 42.44
square kilometers.
Under the terms of the Geita Agreement, Otterburn may earn an
undivided 70% interest in the Geita Gold Project by paying to Lake
Victoria an aggregate of US$152,740, with US$20,000 payable on May
13, 2011 (the “Geita Deposit”), an additional US$22,740
payable on May 20, 2011, an additional US$50,000 payable on May 20,
2012 and an additional US$60,000 payable on May 20, 2013. Otterburn
has also agreed to issue to Lake Victoria an aggregate of 600,000
common shares of Otterburn, with 300,000 common shares issuable on
May 20, 2011, an additional 150,000 common shares issuable on May
20, 2012 and an additional 150,000 common shares on May 20, 2013.
Otterburn has also agreed to fund aggregate expenditures of
US$1,570,000 on the Geita Gold Project, with US$485,000 to be
funded by October 17, 2011, an additional US$85,000 to be funded by
May 20, 2012, an additional US$500,000 to be funded by May 20, 2013
and an additional US$500,000 to be funded by May 20, 2014.
Otterburn has also agreed to complete a preliminary economic
assessment on the Geita Gold Project and all costs associated with
such assessment will be included in the above work expenditures.
Upon the completion of the above payments, issuances and funding,
Otterburn will hold an undivided 70% interest in the Geita Gold
Project.
Appointment of Director
Pursuant to the Agreements and subject to Otterburn’s approval,
Lake Victoria will have the right to appoint one member to the
board of directors of Otterburn.
Completion of Options Subject to Due
Diligence
Closing of the Options is subject to the completion of a due
diligence investigation of the title and environmental condition of
the Properties to the satisfaction of Otterburn by May 20, 2011.
Otterburn is under no obligation to make any cash payments or issue
any common shares to Lake Victoria until the satisfactory
completion of the due diligence investigation, other than payment
of a deposit for each Property (as described below) which is due
and payable by May 13, 2011. There can be no assurance that the
Options will be completed as proposed or at all.
Mr. Peter Hughes CEO of Otterburn, stated: “We are delighted to
have joined with Lake Victoria in the continuing, successful
exploration to advance the promising gold projects in the Lake
Victoria District. Our objective is to expand on the gold
mineralization discovered on Lake Victoria’s favourably-located
Singida Gold Project. The tenor of the gold geochemical results
from recent drilling, which reach high grades locally, bode well
for the future of the project. A drill-intensive program to add to
the highly-favourable results obtained to date is currently
underway.”
Dr. Roger Newell, Chairman of Lake Victoria, stated: “We are
extremely pleased to have signed these agreements with Otterburn
which will guarantee a continued aggressive drill program on the
Singida Gold Project throughout 2011." Dr. Roger Newell, Lake
Victoria’s Chairman and Director, holds a Ph.D. in mineral
exploration from Stanford University, and has more than forty years
of experience in the mining industry. Dr. Newell is renowned
internationally for recognizing the potential of the Carlin Trend
in Nevada and has served as Exploration Manager/Senior Geologist
for the Newmont Mining Company.
Additional information in this news release regarding the
properties has been obtained from Lake Victoria News Releases dated
August 31, 2009, September 21, 2009, October 13, 2010, November 6
& 10, 2010, December 16, 2010, 10K Filing July 14, 2010, Form
10-K/A January 20, 2011 and March 14, 2011. Information has also
been obtained from Barrick and Anglo Gold’s websites.
Lake Victoria Mining Company,
Inc.
Lake Victoria Mining Company, Inc. is focused on acquiring,
exploring and developing gold deposits in Lake Victoria Greenstone
Belt in Tanzania, East Africa.
About Otterburn Ventures Inc.
Otterburn is a British Columbia based mineral exploration
company in the business of exploring and potentially developing
precious metal deposits.
Clive King, Professional Geologist, a Qualified Person as such
term is defined in Canadian National Instrument 43-101, is
responsible for monitoring the supervision and quality control of
Lake Victoria’s exploration program. This press release has been
reviewed by Clive King, Lake Victoria’s in-house Qualified Person
who is registered with the South African Council of Natural
Scientific Professions (Pr.Sci.Nat Reg. No. 400065/09).
On behalf of the board of directors of Lake Victoria Mining
Company, Inc.,
“David Kalenuik”
President and CEO
Disclaimer
This news release may contain forward-looking statements or
information within the meaning of the United States Primary
Securities Litigation Reform Act of 1995 and within the meaning of
Canadian provincial securities laws applicable to the Company.
Forward-looking statements are typically identified by words such
as: believe, expect, anticipate, intend, estimate, postulate and
similar expressions, or are those, which, by their nature, refer to
future events. Forward-looking statements or information are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ from those reflected in the
forward-looking statements or information, including, without
limitation, risks and uncertainties relating to completion of a due
diligence investigation of the title and environmental condition of
the Properties to the satisfaction of Otterburn by May 20, 2011,
conditions that Otterburn must meet in order to earn its interest
pursuant to the Options, obtaining financing to meet the Company's
exploration programs and operating costs during its exploratory
stage, the interpretation of exploration results and the estimation
of mineral resources and reserves, the geology, grade and
continuity of mineral deposits, the possibility that future
exploration, development or mining results will not be consistent
with the Company's expectations, accidents, equipment breakdowns,
title matters, or other unanticipated difficulties with or
interruptions in production and operations, the potential for
delays in exploration or development activities or the completion
of feasibility studies, the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses,
commodity price fluctuations, currency fluctuations, regulatory
restrictions, including the inability to obtain mining permits and
environmental regulatory restrictions and liability, the
speculative nature of mineral exploration, dilution, competition,
loss of key employees, and other risks and uncertainties, including
those described under "Risk Factors" in the Company's Annual Report
on Form 10-K which is on file with the Securities and Exchange
Commission, as well as the Company's periodic filings available at
www.sec.gov and with Canadian Securities Administrators at
www.sedar.com. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking statements. Accordingly, readers are advised not to
place undue reliance on forward-looking statements or information.
The Company does not undertake any obligation to release publicly
revisions to any "forward-looking statement," to reflect events or
circumstances after the date of this news release, or to reflect
the occurrence of unanticipated events, except as is required under
applicable securities laws.
Cautionary note to U.S. Investors -- The United States
Securities and Exchange Commission permits U.S. mining companies,
in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or
produce. This press release contains information about adjacent
properties on which we have no right to explore or mine. We advise
U.S. investors that the SEC's mining guidelines strictly prohibit
information of this type in documents filed with the SEC. U.S.
Investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our
properties.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities to be issued in
connection with the Agreements in the United States or to U.S.
Persons. Any securities sold in connection with the Agreements have
not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
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