News Releases

News Releases

Gem Int'l property agreement for Maganzo and Kolandoto

Vancouver, February 19, 2010

The TSX Venture Exchange has accepted for filing documentation in connection with an amended and restated option agreement between Gem International Resources Inc., and Musadik Mohamed Ally and Najua Kassira, dated for reference Dec. 1, 2009, under which the optionors have granted the company an option to acquire a 70-per-cent interest in certain diamond claims known as the Maganzo and Kolandoto claims, located in the Shinyanga region of Tanzania and which consist of 10 primary mining licences covering a total area of 247 acres. In order to earn the option, the company must:

• Make a cash payment of $235,000 to the optionors within five business days of the date of this bulletin;
• Incur exploration expenditures on the Maganzo and Kolandoto claims in the aggregate amount of $1-million, as to $300,000 on or before Aug. 31, 2010, as to $350,000 on or before Aug. 31, 2011, and as to $350,000 on or before Aug. 21, 2012;
• Issue one million common shares of the company to the optionors on or before the earlier of the earlier of Oct. 31, 2010, or five business days of the date of this bulletin.

The optionors retain a 3-per-cent gross overriding royalty, up to 1 per cent of which may be purchased by the company for $5-million.

The company will pay a finder's fee of 261,111 common shares to Hakol Partners Inc. in connection with the transaction.

For further information, see the company's news release dated Sept. 16, 2009, which is available under the company's profile on SEDAR.