VANCOUVER, BRITISH COLUMBIA - ROYAL SAPPHIRE CORP. (TSX VENTURE: RSL) (the "Company" or "Royal Sapphire") is pleased to announce that it has entered into an agreement (the " Agreement") with Afritin Resources to acquire a 100% undivided interest in the Rurembo property license; a 1000 square kilometer property containing Tin, Tungsten and Tantalum located in the Muhanga, Ngororero, and Kamonyi districts of Rwanda. The license surrounds Gatumba Mining Concession which is the largest colonial mine in Rwanda. Within the claim boundaries there are over 250 artisanal pits that have been mapped and identified. A number of highly prospective pegmatite dyke swarms from the Gatumba Mine extend directly onto the property. Large placer deposits coupled with these dyke swarms allow for the potential to immediately establish a mining operation to generate short-term cash flow.
This acquisition will be the first step in building a portfolio of high quality tin, tungsten and tantalum assets around the world. In addition to the property acquisition, Mr. William S. Deluce will be appointed to the Royal Sapphire Board of Directors.
Mr. Deluce, B.Sc. has over 30 years of international business experience and expertise operating in challenging jurisdictions including extensive experience securing and funding resource projects in more than 20 countries in Africa. He has been assisting the Government of Rwanda in assessing development opportunities in a variety of sectors including airline, textile, coffee, tea and power generation. Mr. Deluce founded Austin Airways, Air Ontario and Air Alliance in Canada, as well as Global Airlift in Kenya and South African Express and he served as a director of Canadian Tire Corporation, Canada 3000 Airlines and a handful of junior exploration companies "Rwanda provides a wonderful opportunity to explore for mineral resources in a country that is secure with good infrastructure and a very supportive government regime. I am very excited to be working in a country with so much natural resource potential." Mr. Deluce stated.
Balbir Johal, Director of Royal Sapphire commented, "Management of Royal Sapphire has thoroughly researched various mining commodities over the last year and has concluded that the base metal tin is the most undervalued and underappreciated base metal. The addition of Mr. Deluce and his proven track record of securing, exploring and developing international mining projects will greatly assist the Company to build a strong portfolio of world class tin assets."
THE TIN OPPORTUNITY
Tin is a ubiquitous metal that occurs in everyday products such as cans, electronics, containers and most machinery but it is experiencing its strongest growth in personal electronics sector. The increase in personal electronic devices is expected to increase from 12.5 billion in 2010 to 50 billion by 2020 with each personal device using approximately 1 gram of Tin. Tin has replaced lead as the preferred and more environmentally friendly solder used in electronic devices.
The current price of tin is approximately $23,000 per tonne up from $21,200 at the beginning of September. Some analysts are forecasting a 22% increase in the tin price to $28,000 per tonne in 2014.
TERMS OF THE AGREEMENT
Under the agreement Royal Sapphire Corp will obtain a 100% undivided interest in the Rurembo property license, located in the Muhanga, Ngororero, and Kamonyi districts of Rwanda. In consideration for the purchase of the agreement, Afritin shall receive 6,666,667 Units valued at $0.15 per Unit. Each Unit consists of one common share and one common share purchase (a "Warrant"). Each whole Warrant entitles the holder to acquire one common share for $0.20 for a period of three years after issuance of the Units. The terms are as follows:
-$25,000 cash payment and 3,000,000 Units upon the execution of the agreement; and
-3,666,667 Units upon the earlier of (i) conversion of the licence from a prospecting to exploration licence, and (ii) one year from the date of execution of the agreement.
The issuance of all common shares is subject to a statutory four-month hold period and conditioned upon the approval of any required governmental or regulatory authority, including the Toronto Venture Stock Exchange.
A finder's fee in accordance with Exchange policy and subject to regulatory approval is payable to Lions Edge Capital.
We seek safe harbor.
On behalf of the Board,
Royal Sapphire Corporation
Balbir Johal, LL.B.
Jo Shearer, Director of the Company and a qualified person for the purposes of NI 43-101, has reviewed and approved the preparation of the technical information in this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Royal Sapphire Corp. in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Royal Sapphire's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Royal Sapphire Corp. disclaims any obligation to update or revise any forward-looking information or statements except as may be required.
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