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Chinese Institute Invests $6 Million
in Douglas Lake Minerals
June 05, 2008
Harp Sangha, CEO/President of Douglas Lake
Minerals Inc. (DLKM-OTCBB), announced that a consortium led by
Tianjin Institute of Geology and Mineral Resources (TIGMR) based in
Tianjin, Peoples Republic of China, has made a $6 million equity
investment to be used for project financing, as well as exploration
and development of Douglas Lake's properties in Tanzania. This will
give TIGMR approximately 20% ownership in Douglas Lake.
The funds will come in tranches with the first $1.5 million expected
before June 10, 2008, and the balance of $4.5 million shortly
thereafter. Use of proceeds will include a final payment to close
the Mbwemkuru alluvial gold deposit in Tanzania with the balance
being used to bring the project into production and fund ongoing
geological work on Douglas Lake's top five exploration targets.
"We are extremely pleased to have gained such an internationally
renowned and geologically experienced partner to assist in
maximizing the potential of our Tanzanian properties, which now
consists of over 10,000 square kilometers," stated Harp Sangha.
"Going forward, our new partners with their considerable industry
and financial resources, will enable Douglas Lake to aggressively
explore its existing and future properties. This partnership will
enable us to bring commercially viable deposits into production,
generating near-term profits with minimum further dilution to the
company's stock. TIGMR also has access to capital, equipment, and
skilled manpower that far exceeds the resources of most mining
companies worldwide."
"We believe that Tanzania is a sleeping giant. On a global scale, it
is endowed with the right geodynamics, and on a provincial scale it
has the right history, tectonic and structural settings. With these
ingredients we can expect ongoing discoveries! The considerable
effort that Douglas Lake's senior management has made in the past
three and half years to assemble their large portfolio of properties
and knowledgeable staff provides us with excellent access to the
country's resources," stated Dr. Zhang Wenqin, Vice Director of
TIGMR. "We believe the Mbwemkuru project has huge potential, and
with our capital investment, equipment and expertise in place, we
will be able to quickly determine the size of the gold reserve.
This, coupled with the low cost-of-production, makes the property a
natural choice for the launch of TIGMR and Douglas Lake's new
partnership to explore and develop mining properties in Tanzania."
ABOUT THE INSTITUTE (TIGMR)
TIGMR is a subsidiary of the China Geological Survey, a department
of the Chinese Ministry of Land and Resources. Established in the
early 1960s, the institute deals directly with the ministry and the
Central Government, and assists the government with special
geological projects conducted in China and worldwide. Since its
founding, TIGMR has achieved numerous earth science accomplishments
and has accumulated significant scientific experience through its
findings and related basic studies in Precambrian and Quaternary
Geology, paleobotany and paleontology.
ABOUT DOUGLAS LAKE
DLKM is an emerging mineral exploration company focused on exploring
and developing gold, copper, nickel, uranium, and diamond mining
opportunities in Tanzania. DLKM has a portfolio of 55 prospecting
concessions and is negotiating to acquire an additional 80. For more
information, go to www.douglaslakeminerals.com
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