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"The company has been assured … the Tanzanian government will not expropriate"

Helio Resource Corp (TSXV: HRC) says it has applied for prospecting licences over four retention licences at its SMP gold project in Tanzania in a bid to move its sole project forward.
"The company has been assured … the Tanzanian government will not expropriate" "The company has been assured … the Tanzanian government will not expropriate" "The company has been assured … the Tanzanian government will not expropriate" "The company has been assured … the Tanzanian government will not expropriate" "The company has been assured … the Tanzanian government will not expropriate"

Changes continue to cast a shadow over part of Helio’s SMP project

Staff reporter

Tanzania abolished the classification of retention licences as part of changes to its mining act 12 months ago and transferred ownership to the government, Helio said.

"The company has been assured verbally by government officials that the Tanzanian government will not expropriate the ground covered by the retention licences and wants to work with the retention licence holders to ensure that projects are advanced to the point where a mining licence can be applied for," Helio said last week.

It said Tanzania's newly formed Mining Commission would make recommendations regarding retention licences but had not committed to a timeframe.

It applied for the retention licences to be re-issued as prospecting licences after consultation with the Ministry of Minerals, Helio said.

Helio has eight prospecting licences, one licence under application, and the four retention licences at its SMP project, which is next to one-time suitor Shanta Gold's New Luika mine.

Shanta (AIM: SHG) pulled out of a US$5.5 million all-scrip deal to acquire Helio in August 2017, citing changes to Tanzania's mining laws.  

Helio responded by rejecting Shanta's "invalid" termination attempt but Shanta maintained it had "clear and compelling rights" to terminate the arrangement.

Helio shares, which were trading at C37.5c a year ago, last traded at 8.5c, half-a-cent above a 52-week low of 8c reached earlier this month.