Each one in plain English, with the numbers worked through for a shareholder.
24 Nov 2008capital raising announcement● NeutralMajor
The company signed an option with Geo Can Resources on November 18, 2008 to earn 60% of certain Tanzanian prospecting licenses, in exchange for US$250,000 cash, 1,500,000 shares and US$1,200,000 of exploration spending over three years, plus a 2% net smelter royalty on any production. It also reported share sales with warrants, including 4,000,000 shares for $1,000,000 and 375,000 shares for $150,000, plus two $50,000 sales of 125,000 shares each. The address has moved to Golden, Colorado and Roger Newell now signs as President, which differs from David Gamache's earlier role (leadership change not explained in the filing).
On June 3, 2008 the company agreed a fourth amendment to its option deal with Uyowa Gold Mining and Exploration for the Kalemela East license. The filing says the company had not met the terms of the original agreement or the first three amendments. The new terms push the payment deadline to August 31, 2008, raise the payment from $20,000 to $75,000, cut the option from a 100% to an 80% interest, and require $1,600,000 of exploration over 48 months.
The company sold 12,500,000 restricted shares at $0.02 per share (about $250,000 gross, computed from the filing's figures) to non-US buyers in a private placement completed May 28, 2008. Proceeds are for working capital, and the company promised to register these shares with an S-1 within 120 days. This adds new shares, diluting existing holders.
