RAPAPORT...Tanzania holds vast amounts of undeveloped mineral-rich resources, which Douglas Lake Minerals hopes to tap-into as it works towards becoming the largest holder of mining concessions in this eastern Africa nation. Tanzania meets the Indian Ocean on its eastern edge, and shares land borders with Kenya (to the north,) Mozambique (to the south,) and Zambia and the Democratic Republic of the Congo to its west.Vancouver, Canada-based Douglas Lake Minerals explores for and develops diamond, gold, copper, nickel, and uranium mines.
"Our royalty-based business plan calls for acquiring 100 percent ownership in over 100 mining concessions," said company president and CEO Harp Sangha. "Initially we will receive revenue from our joint-venture partnership with other exploration companies. As our partners develop these mines, our revenues will also flow from ownership and carried interest in each mine."
During October 2006, Douglas Lake Minerals dramatically increased its concession share. On October 13 the company announced buying two gemstone properties in Tanzania -- Mgambe Diamond Property and the Lake Manyara Emerald and Alexandrite property for undisclosed sums.
Mgambe Diamond mine is located near a De Beers and Tanzania (federal) joint venture at the Williamson Mine.
Earlier in the month, on October 2, Douglas Lake Minerals announced it had acquired 28 gold prospecting licenses. The company is carrying out due diligence on an additional 60 gold prospecting properties in Tanzania.
As a royalty-based mining company, Douglas Lake Minerals had a market cap of about $17 million in October. "Royalty-based public companies traditionally trade at a premium compared to other publicly-traded mining and exploration companies. This is primarily because shareholder dilution is minimized as exploration risks and costs are largely borne by joint-venture partners," Sangha said.