JOHANNESBURG (miningweekly.com) – London-listed base- and precious-metals explorer Obtala Resources has completed an option agreement for five additional gold prospecting licences in Tanzania, with Tanzania-based Atlas Africa.

The five prospecting licences, granted for all minerals other than building materials and gemstones, occur in the world-renowned Lake Victoria Goldfield, in northern Tanzania, and covered a total area of 312,81 km².

This brought Obtala’s total gold holdings within the Lake Victoria region to 16 licences, totalling 983,44 km².

“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 would prove immensely beneficial to the strategic creation of shareholder value for the future,” said Obtala chairperson Frank Scolaro.

Under the terms of the option agreement, Obtala would acquire the sole right and option to purchase a 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  $200 000 for each individual licence.

The company also retained the right to sell or transfer the licences to another party before completion of the option.

Obtala would undertake exploration activities on the individual licences at its own expense within 12 months from the date of signing the option agreement.

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