- Tembo Gold Corp. (TEM) entered a binding agreement with Barrick Gold Corporation, and Mineral Industry Promotion and Consulting Company Limited. (MIPCCL) for non-core licenses and equity investment
- The agreement includes Barrick’s subsidiary, Bulyanhulu Gold Mine Limited (Buly)
- MIPCCL has agreed to sell to Buly a 100 per cent ownership interest in six prospecting licences located in Tanzania
- Buly has agreed to acquire 5,518,764 common shares of Tembo at a price of C$0.27 per share on a private placement basis
- measured gold mineral resources identified in the areas of land are covered by the licenses up to an aggregate amount of US$45 million
- Tembo Gold Corp. (TEM) is down 1.70 per cent and is trading at $0.29 per share as of 2:49 p.m. EST
Tembo Gold Corp. (TEM) has entered a binding agreement regarding the sale of certain non-core prospecting licenses.
The agreement made with Barrick Gold Corporation, Mineral Industry Promotion and Consulting Company Limited. (MIPCCL), includes Barrick’s subsidiary, Bulyanhulu Gold Mine Limited (Buly).
MIPCCL has agreed to sell a 100 per cent ownership interest in six prospecting licences located in Tanzania to Buly. Buly intends to pay US$6 million upon closing of the transaction.
Contingent payments based on the inferred, indicated and measured gold mineral resources identified in the areas are covered by the licenses up to an aggregate amount of 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 closing of the transaction.
The licences are in areas in which Tembo has not previously focused its exploration activities.
Tembo retains its core licence where all exploration activities over the past two drilling campaigns have been conducted.
Also, it is in an area where 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.
Buly has agreed to subscribe for 5,518,764 of common shares of Tembo at a price of $0.27 per common share on a non-brokered private placement basis, resulting in a pro forma ownership of 5.5 per cent.
INFOR Financial Inc. acted as financial advisor to Tembo in connection with the transaction.
Tembo Gold Corp. (TEM) is down 1.70 per cent and is trading at $0.29 per share as of 2:49 p.m. EST.