NEW YORK, Dec. 5, 2011 /PRNewswire/ -- Ruby Creek
Resources, Inc. (OTCBB: RBYC), a gold exploration and mining
company with operations in Tanzania, is very pleased to announce that it
now owns Gold Standard Tanzania assets. Ruby Creek closed November 29, 2011 on the Gold Standard
acquisitions referred to in the News Releases of January 12, 2011, May 24,
2011, August 2, 2011 and
October 4, 2011.
Our new assets include 95% ownership of the following: a 10
year, 10 sq km mining license, a property package of two
Prospecting Licenses of 40 and 89 sq km, a Regional Environmental
Report on the combined 139 sq km (54 sq mile) properties and an
established mining camp all from the privately held company, Gold
Standard Tanzania Ltd. The properties are immediately
adjacent to and on the west-northwest border of Ruby Creek's Gold Plateau Project.
Additionally Ruby Creek received 100% ownership of mining
equipment located on-site and in Dar es Salaam including
excavators, dump trucks, loaders, bulldozers, supply vehicles, and
other mining equipment that greatly increases our production and
support capacity. The total acquisition costs including the
mining license, property and mining equipment was US$3,000,000 plus the assumption of $585,000 in debt.
Closing was originally anticipated for the end of April 2011 but during the due diligence period
several issues were discovered such as damaged or missing equipment
and creditor issues. Over the curse of this period,
Ruby Creek, and Gold Standard were
able to renegotiate terms and appropriate adjustments were made.
For instance, the debenture conversion prices were increased
and the cash component was decreased by amending the two cash
payments totaling $1,000,000 to
$100,000 cash and 1.2 million shares
at a price of $0.75; amending two
$1,000,000 convertible debentures
(convertible at $0.50 per share) to
one $974,000 convertible debenture
(convertible at $1.00 per share) and
one $1,026,000 convertible debenture
(convertible at $0.75 per share) and
reducing debt by a $200,000 creditor
payment Ruby Creek made in April
2011. The full details of the amendment to the purchase
documents, as well as the terms of the transaction, are available
in Ruby Creek's Current Reports on
Form 8-K filed with the SEC on December 5,
2011 and August 15, 2011.
This delay in closing has pushed Ruby
Creek's planned startup of commercial gold production and
first gold revenues forward approximately six weeks into January
2012. Test mining is continuing on the MK 1 and MK 2
Prospecting Licenses and hand mining and testing was carried out on
the GS1 Mining License. In preparation for commercial
production, Ruby Creek is completing
the move of additional mining equipment to the GS1 mining license
area (see October 10, 2011 press
release) from the Songea region. Gold Plateau Project Manager
Bob Gray is coordinating with all
resources to set and optimize the equipment to achieve the goal of
a 200 tons/hour processing rate.
Gold Standard Tanzania completed and received approval of a
regional Environmental and Sociological Impact Assessment
(ESIA). The data from this ESIA will form the basis for and
expedite Ruby Creek's planned
multiple ESIA reports to cover our 1500 sq km (579 sq mile) Gold
Plateau Project.
Bob Moriarty, President of Gold
Standard Ltd. comments: "We are pleased to have finally closed the
deal with Ruby Creek. The Gold
Plateau area has incredible promise for being a large gold
deposit. I look forward to starting gold production."
Robert Slavik, President and CEO
of Ruby Creek, commented,
"Completing the Gold Standard acquisitions is another big step
forward for our Company. I am excited that Ruby Creek now has its first mining license and
more mining equipment, clearing the way to the startup of
commercial gold production on our Gold Plateau project. This
completes a vital phase in Ruby
Creek's Gold Plateau development plans. I also want to
say that I sincerely appreciate Bob
Moriarty's efforts to make this work. There were
unforeseen and complicated issues, but great cooperation and
adjustments have helped make this a successful closing and
ultimately added great value to Ruby
Creek. The final terms we received more than offsets
our short production delay. The acquisitions bring not only
the certainty of a 10-year mining license, but also add the very
valuable regional environmental data. We believe this
regional report will allow us to rapidly increase the number of
planned mining licenses on our Gold Plateau Project. With
gold prices doubling since I first came to Tanzania in April
2008, this is a great time for everyone involved as we work
towards becoming Tanzania's newest
gold producer. It has been an amazing two years since our
first gold property acquisition in the south of Tanzania and our Project has grown so much
larger than we initially envisioned. I am very thankful for
all the people who have joined our Company, sharing our dream and
step by step are helping to make this a reality."
About Ruby Creek Resources, Inc.
Ruby Creek Resources, Inc. (www.rubycreekresources.com) is a
gold exploration and mining company. Ruby Creek operates in Tanzania through its subsidiaries,
Ruby Creek Gold (Tanzania) Limited and Ruby Creek Resources
(Tanzania) Limited.
Ruby Creek is the operator of the
Tanzania Gold Plateau Project, establishing operations and
infrastructure, along with the permitting process in support of the
full development and commencement of gold mining operations on the
Project.
Forward-Looking Statements
This news release may include certain forward-looking
statements. All statements, other than statements of
historical fact, included in this release are forward-looking
statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. This
notice expressly qualifies all forward-looking statements in this
release. The Company, through its management, makes
forward-looking public statements concerning its expected future
operations, performance and other developments. Such
forward-looking statements are necessary estimates reflecting the
Company's best judgment based upon current information and involve
a number of risks and uncertainties, and there can be no assurance
that other factors will not affect the accuracy of such
forward-looking statements. It is impossible to identify all
such factors, factors that could cause actual results to differ
materially from those estimated by the Company. They include,
but are not limited to, government regulation, managing and
maintaining growth, the effect of adverse publicity, litigation,
competition and other factors, which may be identified, from time
to time in the Company's public announcements.
On behalf of Ruby Creek Resources, Inc.
Robert Slavik
President and CEO
SOURCE Ruby Creek Resources, Inc.