Item 1.01. | Entry into a Material Definitive Agreement. |
Effective September 9, 2010, Ruby Creek Resources, Inc. (the “Company”) a gold exploration and mining company with operations in Tanzania, has signed an option to acquire the exclusive mineral and mining rights to the 340 sq km Kapinga property for a fixed purchase price of $500,000. Through the Purchase Agreement, Ruby Creek has been granted an exclusive option for access to and exploration of the Kapinga property located immediately adjacent to and south of its Mkuvia Gold Project in Tanzania. Should Ruby Creek exercise its Purchase option in the six month period, the Kapinga Property will be transf erred into a newly formed joint venture company Ruby Creek Gold (Tanzania) Limited. Ruby Creek will own 85% of the joint venture, Mr. Kapinga 10% and other parties 5%. According to the terms of the agreement, if Ruby Creek exercises its right to purchase the property within six months of signing, a total of $250,000 will be paid at that time. The final $250,000 payment will be made when the first mining license is issued. Payments can be made in cash, in Ruby Creek equity, or a combination of both.
Both the Kapinga Project and the Company’s Mkuvia Gold Project are located in the Liwale and Nachingwea Districts, Lindi Region of the United Republic of Tanzania. The existing Ruby Creek Mkuvia mining camp will be used as base camp for the Kapinga exploration.
The Company’s 380 sg km Mkuvia Gold Project is operated through Ruby Creek Resources (Tanzania) Limited, its 70%-owned joint venture and 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.
Additionally, Ruby Creek has filed a final Form D closing a $1,339,000 private placement. The private placement was in the form of units at a price of $0.25 per unit. Each Unit consisted of one common share of the Company and one common share purchase warrant. Two unit warrants will be exercisable to purchase one common share for a period of two years at an exercise price of $0.50 per share. The private placement was made available only to US Persons who qualified as accredited investors. 5,356,000 units were sold.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers.
On September 15, 2010, the Board of Directors of Ruby Creek Resources, Inc. appointed Mr. David Bukzin as a Director. Mr. Bukzin is the Partner-in-Charge of Marcum LLP's SEC Practice Group. Marcum is one of the nation’s largest independent public accounting and advisory services firms. Mr. Bukzin joined the firm as a partner in 1996. He founded and spearheads several of the Marcum’s practice areas. As the Partner-In-Charge of the SEC Practice, Broker-Dealer Services and Transaction Services groups, he assists clients with regulatory compliance issues, complex deal structures, raising capital and formulating strategic plans and alliances. Prior to joining Marcum, Mr. Bukzin wa s a partner at a small New York City firm. He was named partner in that firm in 1994. Subsequently that firm merged with Marcum upon Mr. Bukzin’s arrival to form the New York City office of Marcum.
