Gem International Resources Inc. | A Junior Diamond Exploration Company

Gem International Resources Inc. (TSX-V:GI) has entered into an option agreement with Musadik Mohamed Ally and Najua Kassira, to acquire a 70-per-cent interest in certain diamond claims in the prolific Shinyanga region of Tanzania. The property consists of 109 Primary Mining Licences covering a total area of 2,743 acres that are situated within the same geological terrain as the Williamson mine.

Tanzania has been a significant diamond producer for several decades, with the bulk of production coming from the Williamson Diamonds Mine at Mwadui. Over 300 kimberlites are known in Tanzania of which, 20% are diamondiferous. Some 600 dipolar magnetic anomalies with similar geophysical characteristics to known kimberlite pipes have been recorded during recent geophysical surveys. Also of relevance are the psuedo-kimberlites or para-kimberlites along the young craters where diamonds have been discovered.

The Williamson mine is currently owned 75 per cent by Petra Diamonds and 25 per cent by the government of Tanzania, and with a production history spanning seven decades. The Williamson mines cover 146 acres and at the time of its discovery in 1940, was considered the largest economically exploitable pipe in the world. During its rich production history, it has produced over 20 million carats, and there remains a major resource of approximately 40 million carats. The mine regularly produces large, high-quality stones and is a source of rare and extremely valuable fancy pink diamonds. In a recent sale this June, a 47.15-carat Type II white diamond from Williamson mine sold for $637,000 (U.S.).

Tanzania’s robust economy reflects its stable political situation. Annual growth rate between 2000 and 2006 averaged 5.8%, one of the best performers in sub-Saharan Africa. Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of 7.1% in 2008. According to the World Bank, Tanzania ranked as the seventh most popular destination for foreign capital out of the 47 sub-Saharan African countries listed, having attracted over US$2.8 billion of foreign direct investment between 2000 and 2006.

Consideration for the acquisition is cash payment of $300,000, incurring exploration expenditure of $1.5-million on the property over a three-year period and the issuance of one million common shares from treasury upon receipt of TSX Venture Exchange approval for this transaction. The vendor retains 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 has entered into a private placement for the sale of 2,850,000 units at a price of $0.15 per unit for a total of $427,500. Each unit will consist of 1 common share and 1 share purchase warrant for the purchase of 1 further common share of the Company within five years at the price of $0.32 per share.

These transactions are subject to regulatory approval. The maximum allowable finder’s fee shall be paid in shares and cash with regard to the value derived from the Agreement and the private placement financing as per the TSX Venture Exchange’s policy guidelines.

Derrick Strickland, P. Geo., a qualified person under NI 43-101, has reviewed the technical content of this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

Consolidated Global Diamond Corp. seeks safe harbor.

News Releases

News Releases

Acquires 70% in Diamond Properties in Tanzania