History
A Tanzanian gold explorer that built its licence portfolio through share issues, sold down its main project to Ruby Creek, raised $12.2 million in 2011, then deregistered in 2017.
2005-2007: Building a Tanzanian licence base
The company's move into Tanzania began in August 2005, when it agreed to buy five prospecting licences from three vendors. In November 2005 it amended the three main deals, doubling the shares it would issue: 5,600,000 to KBT, and 5,200,000 each to Hydro-Geos and Megadeposit. Holders paid for the same licences with more dilution.
In April 2006 it closed the purchase of three licences (Tabora, Ashanti South West and Negero/Green Hills), issuing 16,000,000 restricted shares. Two more licences were due within 120 days. Kulvinder Matharu, the vendors' controller, became director and Chairman. The next day the company signed a Strategic Alliance with Canaco Resources, which would pay $350,000 once the company held five licences and commit up to $2 million over two years. The filing described the company as a start-up exploration shell with no revenue.
In October 2006 the audit committee withdrew reliance on earlier accounts, because a December 2005 investor relations contract with Broadstreet Marketing had not been recorded. The restatement was expected to add $225,000 to the year's net loss. In January 2007 the company raised $1,484,200 at $0.70 a share and issued 11,650,000 shares for asset purchases the filing did not describe.
2008-2010: Mkuvia and the Ruby Creek sell-down
The record is quiet through 2007 and most of 2008. In August 2008 the company closed a private placement at prices between $0.10 and $0.40 a share, well below the 2007 raising, for Tanzanian acquisition, exploration and working capital. The filing gave no total.
In July 2009 it signed a new joint venture with Mkuvia Maita over four licences of about 380 sq km, the focus of its exploration. It paid US$40,000, kept Maita's 3% royalty, and was released from about US$460,000 of yearly payments by giving up about 50 sq km.
The company then sold the project down. In November 2009 Ruby Creek Resources could earn 70% of 125 sq km for $3,000,000. In June 2010 a second deal let it earn 70% of the remaining 255 sq km for $6,000,000, including 4 million Ruby Creek shares. The planned result was Ruby Creek 70%, the company 25% and Maita 5%. In September 2010 the company issued 16,666,667 shares, deemed $2,500,000, as a fee on a property deal with IPP Gold Limited, whose details were not given.
2011: A larger raise and a related-party purchase
In March 2011 the company completed its biggest raising, selling 27,173,372 units at $0.45 for $12,228,017 gross and $11,439,635 net. Each unit carried a warrant at $0.52. The money was for Tanzanian exploration and working capital.
In August 2011 the board approved buying about 2.67 sq km next to its four Handeni licences (about 800 sq km) from Handeni Resources Limited for 15,000,000 shares at a deemed $0.40. Chairman Reginald Mengi had an interest in the seller and did not vote. The purchase closed on November 30, 2011.
2012-2017: Quiet years and deregistration
The record for these years is thin. In January 2013 the company raised $650,000 by selling 13,000,000 shares at $0.05. The share count fell from 321,416,654 in 2015 to 2,142,778 in 2016, but the beats do not explain the change. In June 2017 it settled $297,000 owed to IPP by issuing 2,475,000 shares at $0.12. Whether Ruby Creek completed its payments was never confirmed in these filings.
On August 28, 2017 the company deregistered its securities, ending its duty to file reports with the SEC. By then it was based in Dar es Salaam, quoted on the OTC Pink market, and its Mkuvia and Handeni interests were its listed assets.
Written from the 14 story beats below (2005 to 28 Aug 2017), which come from the company's own announcements and filings.