VANCOUVER , /CNW/ - Tanzania Minerals Corp. (the "Company" or " Tanzania ") (TZM.V) (FRANKFURT: CA87600X1087) is pleased to announce that it has entered into a non-binding Letter of Intent dated May 15, 2012 , with Karoo Exploration Corp. ("Karoo") whereby Karoo can acquire a 100% interest in certain mineral claims located in the Songea and Lindi regions of southern Tanzania (the "Property"). Karoo is a privately held mining company, incorporated under the laws of British Columbia.
Pursuant to the non-binding Letter of Intent, Tanzania will grant to Karoo the option to acquire a 100% interest in the Property (the "Option"), by issuing 1,200,000 common shares to Tanzania , and incurring exploration expenditures on the Property totaling $750,000 , all over a three year period. Upon exercise of the Option, Karoo will grant to Tanzania a 2.0% NSR on the proceeds of any commercial production from the Property. One-half of the NSR and a right of first refusal on the other half can be purchased by Karoo for a cash payment of $2,000,000 . The other half of the NSR can be purchased by Karoo for a cash payment of $5,000,000 .
During the term of the Option, Tanzania will have the right to nominate 2 individuals to the board of Karoo. It is anticipated that prior to exercise of the Option, Karoo will list its shares on a public stock exchange, or complete a transaction with an existing publically traded company. The transaction is conditional upon Tanzania entering into a definitive option agreement with Karoo.
For more information, contact Kal Matharu at (204) 942-3191.
Additional information, including technical reports and other public documents are available on SEDAR at www.sedar.com or on the Company's website at www.tanzaniaco.com.
Tanzania Minerals Corp. is an emerging junior exploration company trading on the TSX Venture Exchange. The Company has an extensive portfolio of projects in Tanzania .
On behalf of the Board of Directors of Tanzania Minerals Corp.
Kal Matharu, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.