Lake Victoria Mining Company, Inc. (OTCBB:LVCA) (
) announces that following the review of initial exploration results of Otterburn Ventures Inc. (CNSX: OTB) (
), that were confined only to the Singida gold project, Otterburn has determined that it will not be proceeding with the exercise of its option to acquire up to a 70% interest in certain primary mining licenses and prospecting licenses in Tanzania as previously announced on May 29, 2011. After careful consideration of the initial exploratory drilling at the Singida gold project, the board of directors of Otterburn believes it is in the best interests of Otterburn’s shareholders to terminate all four option agreements and preserve its cash reserves for new projects that could provide greater potential for the discovery of a resource. “Although we are disappointed with the results from the Singida project, we are encouraged by the discipline and financial responsibility our geological and management team have shown in coming to the decision to release the option on all four projects. We have a responsibility to our shareholders and we have decided to preserve the majority of our treasury to invest in more advanced-stage projects. This will also allow Lake Victoria Mining Company, Inc. the freedom to find a more suitable partner for these less advanced projects in Tanzania’s gold-producing ‘Lake Victoria Greenstone Belt’” stated Peter Hughes, CEO of Otterburn.
Lake Victoria’s President and CEO David Kalenuik explains: “We are sorry to see Otterburn release all their option agreements with us, but we understand their desire to get involved in more advanced projects. We were hoping for a long term joint venture partner for the four projects that Otterburn had optioned from us. However, along with Otterburn we have completed the Phase 2 drilling of the Singida project, advancing the project to the next stage. We would like to wish them the best in their pursuits as we continue to advance all of our gold projects in Tanzania, the fourth largest gold producing country in Africa.”