VIPR Industries Closes on Agreement to Acquire Up to 50% Ownership of the Mwamagunguli Diamond Mine, Located South of the World
16 December 2008 - 12:00AM
Marketwired
VIPR Industries Inc. ("VIPR") (PINK SHEETS: VIPR) announces that it
has signed a closing agreement to purchase up to 50% ownership of
the Mwamagunguli Diamond concession in the rich Shinyanga Diamond
Region of Tanzania, which is one of the world's largest diamond
producing areas. The Mwamagunguli diamond deposit consists of ten
primary mining licenses that are situated south of the Williamson
Mine, one of Africa's most significant diamond producers.
Terms of the agreement consists of an initial payment which has
been paid in return for exclusive rights to the property for an
agreed upon period of time. Further funds are required to be paid
in order for VIPR to receive its up to 50% interest. Any amount of
funds paid which includes the initial deposit already paid VIPR
shall retain its percentage of the property on a prorata basis.
Should the exclusive period expire without all of the required
funds being advanced, VIPR shall maintain its prorate portion and a
right of first refusal.
The Williamson Mine is currently owned 75% by diamond mining
giant De Beers, and 25% by the Government of Tanzania, which has a
production history that spans six decades. The Williamson pipe
covers 360 acres and at the time of its discovery in 1940, was
considered the largest economically exploitable pipe in the world.
The large open pit mine is currently about 90 meters (300 ft) deep
and located about 160 kilometers (100 miles) south of the town of
Mwanza on the shores of Lake Victoria in Tanzania, in the Shinyanga
region. The most important geological feature of the Williamson
diamond mine is the kimberlite pipe, which ranks as the largest
economically exploitable diamond-bearing volcanic pipe in the
world. Dr. Williamson, the discoverer of the site, first owner and
namesake of the mine, named the site "Mwadui" after a local chief;
"Williamson" and "Mwadui" are now virtually synonymous in the
diamond mining world.
Mike Gerstner, President of VIPR Industries commented "This
agreement to purchase up to a 50% interest can represent a
substantial leap forward by the Company. Provided the company is
able to raise the necessary funds to retain its full or partial
ownership position, we deem this property to be a significant asset
which in a very short period of time can potentially deliver
significant revenues through production."
About VIPR Industries Inc.
VIPR Industries Inc. is a precious metals exploration and
development company focused on Gold, Uranium, and other precious
metal resources and reserves through mergers, acquisitions and
resource development.
Cautionary "Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995. Some of the information included in
this press release and other documents by VIPR Industries Inc. (as
well as information included in statements made by its
representatives, about information about the business it is engaged
in or proposes to engage in or about acquisitions) may contain
forward looking statements. Forward looking statements do not
relate strictly to historical or current facts, often will be
phrased in the future tense and may include the words "may,"
"could," "should," "would," "believe," "expect," "anticipate,"
"estimate," "intend," "plan" or other words or expressions of
similar meaning. Forward looking statements that relate to VIPR
Industries Inc. ("VIPR") or its present or proposed business are
based on VIPR's current beliefs and expectations about future
events and include statements that reflect management's beliefs,
plans, objectives, goals, expectations, anticipations and
intentions with respect to VIPR's financial condition, results of
operations, future performance and business, including statements
relating to VIPR's business strategy and VIPR Industries current
and future development plans. Factors that could cause actual
results to differ materially from projections include, among
others, precious metals prices, decisions and activities of the
operator of the various properties, unanticipated grade,
geological, metallurgical, processing or other problems the
operator may encounter, changes in project parameters as plans
continue to be refined, economic and market conditions, as well as
other factors described elsewhere in this press release or any
other filings submitted by VIPR. In addition, acquired royalty
interests on certain projects are subject to risks associated with
conducting business in a foreign country, including application of
foreign laws to contract and other disputes, foreign environmental
laws and enforcement and uncertain political and economic
environments. Most of these factors are beyond the Company's
ability to predict or control. The Company disclaims any obligation
to update any forward-looking statement made herein. Readers are
cautioned not to put undue reliance on forward-looking
statements.
For more information please visit
(http://www.viprindustries.com/).
Contacts: VIPR Industries Inc. Investor Relations (416) 644-8648
Email: info@viprindustries.com Website: www.viprindustries.com