Note out today from Eight CapitalThese guys have a large following in the junior mining space....the note, in it's entirety, is below.
A quick note on Barrick Gold (ABX CN), on the back of their not-so-new-news, announcing they’ve settled the majority of the North Mara legacy land claims and paid the first tranche of the $300mm settlement it agreed with Tanzanian government. Rewind here… Before Bristow took over, Acacia mining (who ABX acquired) did a deal with the Tanzanian government to restate the mining licence. It went something like this: make a $300mm catch-up payment, and in return get the mining licenses restated.
Bristow steps in, he has a huge track record in Africa, and delivers on promises. While this isn’t new-news, the deal is the same as the old one, it’s bullish for both ABX and mining in Tanzania.
This matters why?… Africa broadly speaking and Tanzania specifically have been out of favour. But with the lack of new mine supply globally, and the success Bristow is having in country… I suspect the tides are turning. Look at GUY CN in Guyana… 6 months ago, you couldn’t have given it away if your life depended on it. Now there are 3 buyers in a Mexican-standoff, one is all cash!!
Enter Tembo Gold (TEM CN). This is a flyer, but tuck a little bit away; a call option on African gold.
Sporting a lean $7mm market cap. Highly prospective, micro cap story, swinging for distance not batting average here. In Tanzania. Resurrected from the dead. 8km’s from Bulyanhulu. Multiple hot hits. David Anthony the CEO is a very real guy for something this size.
They own a 110km2 contiguous area consisting of 35 active licences and 3 under application, adjacent to Acacia Mining's 20Moz Bulyanhulu Mine (current resource and past production) in the prolific Lake Victoria greenstone belt of Tanzania. Significant initial drill results & Currently over 2,000m of mineralized strike drilled to depth of 150m on three targets, Ngula 1, Nyakagwe East and Nyakagwe Village This one, we’re hitting for distance.
High grade, shallow depth, could be a MONSTER. Tembo is Swahili for Elephant, ah-thank-you (*Austin Powers voice*).
Very closely held (80% in friendly hands).
No debt.
No burn (>$5k a month).
Asset tenure secured.