Douglas Lake Minerals Inc DLKM

DOUGLAS LAKE SIGNS AGREEMENT FOR THE ENTIRE MKUVIA

[sittingbullish]

Good ... Rob seems like a "do-er" not a talker... get the gold out. Could have waited for better deals/offers, but a bird in hand....

press release

June 16, 2010, 8:53 a.m. EDT ·Recommend·Post:

DOUGLAS LAKE SIGNS AGREEMENT FOR THE ENTIRE MKUVIA GOLD PROJECT

) (Frankfurt: D60.F) is pleased announce that it has signed an additional Purchase Agreement with Ruby Creek Resources, Inc for the remaining 255 square kilometers of the Mkuvia Alluvial Gold Project in Tanzania. The Mkuvia Alluvial Gold Project is located in the Liwale and Nachingwea Districts, Lindi Region of the United Republic of Tanzania. The Project is the subject of a report titled the "Technical & Resource Report on the Mkuvia Gold Project", prepared by Laurence Stephenson, P.Eng. of British Columbia, Canada and Ross McMaster, MAusIMM of Queensland, Australia. Mr. Stephenson and Mr. McMaster are independent and Qualified Persons ("Q.P.s") in accordance with JORC and NI 43-101.

This new agreement, along with the November 7, 2009 agreement with Ruby Creek, covers the entire 380 square kilometer area held by the Company. Under the terms of the new agreement, Ruby Creek will make payments totaling $6 million in a combination of cash and common shares over the next three years for the exclusive mineral and mining rights of the remaining 255 square kilometers. Along with the payments due under the November 9, 2009 agreement, this will bring a total commitment of $9 million due to the Company from Ruby Creek for the exclusive rights to the entire Mkuvia Project. This source of financing continues to solidify our working relationship with Ruby Creek and has the added bonus of being non-dilutive to our shareholders.

The Mkuvia Project will be operating through Ruby Creek Resources (Tanzania) Limited, the joint venture company established by the Company and its joint venture partners. The Company owns 25% of this newly established company, with Ruby Creek and Mr. Mkuvia Maita holding the remaining 70% and 5%, respectively. The Joint Venture Company has been registered with the Tanzanian Ministry of Energy and Minerals, and we proceeding with filings for governmental approvals and permits, as well as environmental and mining licenses, to commence full scale mining operations.

Harp Sangha, CEO of Douglas Lake Minerals Inc., stated "This agreement with Ruby Creek represents a positive step forward in developing the Mkuvia Project in its entirety. We are very pleased to have such a strong and dedicated team from Ruby Creek working on this project with us. This allows us to allocate our time and resources on our hard rock properties in the Morogoro Region and the Handeni District. We have been extremely encouraged with the grades recovered by Canaco Resources /quotes/comstock/11v!can (CA:CAN0.87, 0.00, 0.00%) from their diamond drill results in the Handeni District given two of our 100% owned properties are contiguous to the north and to the west of Canaco's New Killindi property. This has not only had a substantial impact on their share price, recently hitting CDN
.93 from a 52 week low of CDN
.06, but it has also created worldwide interest in the exploration and development of this area."

[Des1302]

I waited all these years for DLKM to develop the property and they sell it to Ruby...and will get 25% of revenue...Just wonderful.

[Yukon_Cornelius]

RBYC Current share count: Shares Outstanding 13.17M Float: 6.80M From RBYC's PR:Upon the satisfaction of certain conditions, Ruby Creek will issue to Douglas Lake 4 million restricted shares of Ruby Creek's common stock. The agreed upon value assigned to the restricted shares is .80 per share, totaling $3.2 million

[Des1302]

Maybe i got my wires crossed then...I could of sworn that all we used to talk about was the value of the property once they started mining and how the stock would jump from revenues of mining operations, not revenues from selling off property. The idea was for china to help them get to mining so they can make some long term money and actually be a MINING company....but your right they clearly

[Yukon_Cornelius]

Des- "They" will start mining- but the 'they' was never going to directly be a Douglas team. Douglas hasn't the staff with the expertise to operate. Now sure, they could have gone out and acquired it- that is what Ruby contines to do- build their operations team. And I do believe once the gold starts to come out, both companies will see a significant valuation spike

[Des1302]

i hear ya...well like I said..I'm holding my bags..cause it'll popped back up for one reason or another..maybe they'll find a alluvial copper mine to say they will mining for 2 years and then sell.. and i don't care what you say, most of was not buying thousands of shares for DLKM to become 25% holder of Mkuvia and waiting on another company to now do what they said they were going

[mantraman]

The plan to sell out some or all of Mukuvia in return for royalties is nothing new.  I wasn't wild about it when it first surfaced but I'm okay with it now especially since Douglas ends up owning a substantial amount of Ruby, so that if Ruby rises in price, so will Douglas.  Also, there is so much potential for BIG BUCKS to come out once production gets rolling that even 25% will