- Tembo Gold Corp. (TEM) completes its sale of certain non-core prospecting licenses in Tanzania for US$60 million
- An initial payment of US$6 million is expected
- Other payments will be based on gold mineral resources identified in the areas of land covered by the licenses for up to US$45 million
- Buly is required to invest a minimum of US$9 million in the licence area
- Tembo Gold Corp. (TEM) is unchanged trading at $0.27 per share as of 11:29 a.m. ET
- Barrick Gold Corporation (ABX) is down 1.05 per cent trading at $30.12 per share as of 11:29 a.m. ET
Tembo Gold (TEM) has sold non-core prospecting licenses in Tanzania to Barrick Gold Corporation (ABX) and Bulyanhulu Gold Mine Limited for US$60 million.
An initial payment of US$6 million is expected. Other payments will be based on the inferred, indicated, and measured gold mineral resources identified in the areas of land covered by the licenses for up to US$45 million.
Buly is required to invest a minimum of US$9 million in the licence area over the course of the four years following the completion of the transaction.
The licences are in areas where Tembo has not focused its exploration activities. Tembo retains its core licence where there remains a significant number of untested new targets, as well as the three prime targets where the bulk of the previous drilling was carried out.
David Scott, President and CEO of Tembo, commented,
“The waiting for this closure is over and the Tembo team is in place and ready to deploy the drills… The confidence we have had in the Tembo project since our earlier drill programs is now to be tested.”
Two exploration programs will be running simultaneously, and Tembo is expecting results from them within eight weeks of commencement.
Buly subscribed for 5.5 million common shares of Tembo for $0.27 per common share resulting in a pro forma ownership of 5.5 per cent of Tembo.
Tembo intends to use the net proceeds for general working capital and project-related costs including drilling and operational field expenses.
Tembo Gold Corp. (TEM) is unchanged trading at $0.27 per share as of 11:29 a.m. ET.
Barrick Gold Corporation (ABX) is down 1.05 per cent trading at $30.12 per share as of 11:29 a.m. ET