Helio Resource Corp. (TSXV:HRC) received a letter from the Ministry of Energy and Minerals of the United Republic of Tanzania stating that its licence PL2580, which covers the Kenge Resource Area on the SMP Gold Project, has been converted into a retention licence. The licence will help provide security of tenure through the pre-feasibility and feasibility stages of the project.

As quoted in the press release:

This is a positive development for the region, which currently has one gold mine in production. Shanta Gold, a UK listed gold miner, commissioned the New Luika Mine in 2012, and produced 64,000 ounces of gold in 2013. Guidance for 2014 is for production of 80,000 ounces of gold at a cash cost of $750 / ounce. The New Luika mine is located 5km west of the Kenge Resource Area.

Helio CEO, Richard Williams, said:

It allows the Company to commit resources to the development of the SMP Project, knowing that the Tanzanian government is fully supportive of our activities to date. Shareholders can feel confident the licence process works.

Click here to read the Helio Resource Corp. (TSXV:HRC) press release