Ruby Creek Resources Inc (OTC:RBYC) is expanding its operations in Tanzania. At least, this seems to be the main theme of the company’s latest press release which came up yesterday.
Considering that investors had been waiting for some kind of explanation with regard to the delay of RBYC’s 10-K form, the latest update was more than welcome. RBYC stock went up 0.8% to $1.212 per share. However, RBYC shifted a total of 140 thousand, which is an 11-week volume record.
In a nutshell, the company announced it had closed an acquisition agreement with Gold Standard Tanzania Ltd. – a private company owning a handful of properties located near Ruby Creek’s Gold Plateau Project. Originally planned for completion by late-April, the transaction was subsequently delayed, which allowed for a new round of negotiations, due diligence, as well as a new financial scheme. It is this delay that has been stated as the main reason for the delay of both RBYC’s 10-K form and the start of commercial gold production. The latter has now been scheduled to commence in January 2012.
At this stage, RBYC’s business operation appear to be following a fairly logical course. Yet, this circumstance cannot serve as an excuse for the preparation of the annual report covering the fiscal year ended Aug 31, 2011.
