VIPR Industries Closes on Agreement to Acquire Up to 50% Ownership of the Mwamagunguli Diamond Mine
VIPR Industries Inc. 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.”
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.
