Option Agreement completion

 

TIDMGOA 
 
RNS Number : 4140T 
Gemstones of Africa Group PLC 
05 June 2009 
 

 
 
Gemstones of Africa Group PLC 
 
 
 ("GoA" or the "Company") 
 
 
Gemstones of Africa completes Option Agreement for two gemstone licences in 
Tanzania 
 
 
The Board of Gemstones of Africa, the AIM quoted mineral explorer focused on 
Tanzania, is pleased to announce the signing of an Option Agreement with Javan 
Investments Company Limited (JICL), a private Tanzania registered company for 
two (2) prospecting licences in Tanzania. 
 
 
The two prospecting licences, granted for Gemstones, occur in south-eastern 
Tanzania with a total area of 19.54 km2. The area is known to host sapphires, 
green and red garnets, and rubies, with a number of artisanal workings nearby. 
 
Under the terms of the Option Agreement GoA will acquire an initial 25% interest 
in both licences for a consideration payment of US$15,000 per licence. GoA will 
have the sole right and option to purchase an additional sixty percent (60%) 
beneficial interest in the licences, within 24 month of signing the Option 
Agreement, in exchange for a cash payment of US$75,000 for each individual 
licence. GoA has a further option to purchase an additional thirteen percent 
(13%) beneficial interest in the licences, within 48 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 US$200,000 for each 
individual licence. 
 
 
David Hargreaves, Managing Director of Gemstones of Africa, commented that 
"Tanzania is well known for being rich in gemstones and we are delighted to have 
signed this agreement which gives us the opportunity to partake operationally in 
an area well known for its quality gemstones. These additions to the mineral 
portfolio are expected to be beneficial to the creation of shareholder value for 
the future." 
 
 
For further information please contact: 
 
 
Gemstones of Africa Group Plc                 Tel. [phone] 
David Hargreaves, MD 
 
 
Daniel Stewart & Company plc                 Tel. [phone] 
Simon Leathers /Stewart Dick 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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