Agreement with Barrick Gold for Sale of Non-Core Licences Vancouver, British Columbia--(Newsfile Corp. - December 7, 2021) - Tembo Gold Corp. (TSXV: TEM) ("Tembo" or the "Company") is pleased to announce that it has entered into a binding agreement with Barrick Gold Corporation (TSE: ABX) (NYSE: GOLD) ("Barrick"), Bulyanhulu Gold Mine Limited ("Buly"), a subsidiary of Barrick, and Mineral Industry Promotion and Consulting Company Limited ("MIPCCL"), a wholly-owned subsidiary of the Company, dated December 7th, 2021 (the "Purchase Agreement") in respect of the sale of certain non-core prospecting licenses. Pursuant to the Purchase Agreement, MIPCCL has agreed to sell to Buly a 100% ownership interest in six prospecting licences (the "Licences") held by MIPCCL located in Tanzania (the "Transaction"). Under the terms of the Purchase Agreement, the consideration payable and future commitments by Buly are as follows:
- US$6,000,000 upon closing of the Transaction;
- Contingent payments calculated based on the inferred, indicated and measured gold mineral resources identified in the areas of land which are covered by the Licenses (the "Licence Area") up to an aggregate amount of US$45,000,000; and
- A requirement for Buly to invest a minimum of US$9,000,000 in the Licence Area over the course of the four years following the closing of the Transaction.
The Licences are located in areas on which Tembo has not previously focused its exploration activities. Tembo retains its core licence on which all exploration activities over the past two drilling campaigns have been conducted, and on which there remains a significant number of untested new targets, as well as the three prime targets on which the bulk of the drilling was carried out.
Concurrently with the execution of the Purchase Agreement, Buly has agreed to subscribe for, on a non-brokered private placement basis, 5,518,764 of common shares of Tembo at a price of C$0.27 per common share (the "Private Placement") resulting in a proforma ownership of 5.5%.
INFOR Financial Inc. acted as financial advisor to the Company in connection with the Transaction. The Transaction and the Private Placement are subject to the approval of the TSX Venture Exchange ("TSXV"), certain regulatory approvals in Tanzania, and other closing conditions customary in transactions of this nature. Closing of the Transaction and Private Placement is expected to occur in the first quarter of 2022.
David Scott, President & CEO, stated, "This agreement is a key milestone in the advance of Tembo's exploration on the Licence Area that the Company has long considered some the most prospective in the Lake Victoria goldfield, and a very significant confirmation of the oft stated potential for a significant gold discovery on this ground. We do not underestimate the significance of Barrick's interest and the conclusion of this Purchase Agreement that will enable a serious advance of our exploration strategy, and our expectation and hope is that a number of significant new discoveries will be made, benefitting both the companies that are making the investment, the surrounding communities and this mining friendly country of Tanzania."
About Tembo Gold Corp.
Tembo is a Canadian publicly listed mineral exploration company (TEM on the TSX Venture Exchange) with a 100% interest in the Tembo Gold Project. Tembo's focus is the discovery and development of gold projects in Africa. The Company has assembled a highly experienced team with a proven history of developing, financing, and operating mining projects in Africa. The Company's exploration strategy is to discover mineral resources as well as continue to look for additional opportunities that can bring value to the Company and shareholders.
https://www.newsfilecorp.com/release/106968