Tembo Gold Corp. has arranged a non-brokered private placement. The company proposes to complete a non-brokered private placement consisting of up to 25 million common shares at a price of five cents per share for total gross proceeds of $1.25-million. The shares will be subject to a four-month-and-one-day hold period from the date of issuance of the shares.
The proceeds raised from the financing will be used to cover corporate costs in Canada and Tanzania, general working capital purposes, and to pay down debt.
The financing is subject to acceptance and approval by the TSX Venture Exchange.
David Scott, president and chief executive officer of Tembo, stated: "We have continued to protect our licence holding and physical assets in Tanzania through the recent lean years and remain fully convinced of the quality and potential of the Tembo project to host significant gold mineralization. Our in-country exploration and administrative team are poised to remobilize and continue the work and believe that the results to date are a strong indicator of the potential of the ground and future of the company. We are grateful to our main shareholders who have remained faithful, supporting the company through this time, and we anticipate advancing the project to their benefit and that of all stakeholders in an improved gold market."
Simon Benstead, director and chief financial officer of Tembo, stated: "The initiatives outlined today will significantly improve the liquidity position of the company and enable Tembo to move forward with a clean balance sheet. We are pleased to have the ongoing support of several key shareholders and insiders, together with the commitment of a dedicated management team in Tanzania and Canada. Conditions in mining in general have dramatically improved and Tanzania specifically has seen a sharp turn in sentiment with the Barrick/Acacia transaction. Tembo is now well positioned to take the next steps that will move the property toward production."
About Tembo Gold Corp.
Tembo Gold is a Canadian publicly listed mineral exploration company with a 100-per-cent interest in the Tembo gold project, which is located adjacent to African Barrick's 14-million-ounce Bulyanhulu gold mine in the prolific Lake Victoria greenstone belt in Tanzania.
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