Tembo Gold announces transformative acquisition and landmark investment from Tanzanian strategic investor
Tembo Gold Corp to announce that it has entered into a Licences Purchase Agreement with Lake Victoria Gold Ltd. a private Australian company, pursuant to which the Company will acquire, indirectly through its wholly-owned subsidiary Tembo Gold Tanzania Limited, LVG’s Imwelo Gold Project in Tanzania.
Tembo has also entered into a binding letter of intent dated August 8th, 2023 for a C$11,520,000 financing with Taifa Mining and Civils Limited, a prominent Tanzanian mining contracting firm.
The Project is a gold project located in northern Tanzania immediately to the west of Geita Gold Mine of Anglogold Ashanti. The Project is held by LVG’s Tanzanian subsidiary, Tanzoz Mineral Limited. An updated pre-feasibility study was completed in 2021 by Measured Group Pty Ltd of Australia, incorporating mine design, mine planning, scheduling, reserve estimation and costing.
The Project is held under a Tanzanian mining licence ML538/2015 and includes a primary mining licence PML2637, over which LVG has a right to acquire through a purchase agreement. The ML is 3.85km2 and the PML is 8.5021ha. The Project is subject to a 2% royalty to a previous owner.
The ML is fully permitted for mine construction and production to commence. The Project resource comprises seven mineralized locations that have been drilled and includes 42,000oz Au measured mineral resources at 3.15g/t, 95,700oz Au indicated mineral resources at 1.95g/t and 153,900oz inferred mineral resources at 1.53g/t for a total 291,600oz Au (the “Historical Resource Estimate“).
The gold occurs as typical quartz vein shear hosted gold deposits suitable for open pit mining. The Project ML provides ‘bluesky’ potential. Drilling to date has only been down to 80m below surface. A number of areas were not drilled as they were not accessible at the time, and extensions to the known mineralisation remain untested, both along strike and certainly downdip.
The Company anticipates it may define a current mineral resource on the Project and, eventually, mineral reserves that will allow expansion of production and extension of the mine life; however, there is no assurance that further exploration will result in the definition of current mineral resources or mineral reserves.
“Lake Victoria Gold is excited for the opportunity to become part of the Tembo family. The merging of the technical and country knowledge and experience of our respective teams will provide a strong foundation for the development and progress of the Tanzanian Gold Projects,” said Seth Dickinson, Managing Director, Lake Victoria Gold.
Under the Agreement, Tembo will acquire the Project for consideration of C$5,500,000, consisting of approximately 23.6 million common shares of Tembo at a deemed value of C$0.22 per share, plus approximately USD$221,000 cash.
Tembo Gold is a Canadian public company listed on the TSX Venture Exchange under the symbol TEM. The Company has a 100% interest in the Tembo Gold Project which has over forty thousand meters of drilling and is located adjacent to Barrick’s 20Moz Bulyanhulu Mine in Tanzania’s prolific Lake Victoria Goldfield.
In April 2022 Tembo completed a transaction with Barrick, whereby Tembo sold six of its non-core licenses to Barrick for $6mm USD, and Barrick is committed to spending $9mm USD over the first four years. Additionally, Tembo will receive contingent payments of up-to $45mm USD on the first five million ounces discovered by Barrick.
The company has assembled a highly experienced team with a track record of developing, financing, and operating mining projects in Africa. Tembo is focused on the discovery and development of world-class gold projects in Africa as well as seeking additional opportunities that can bring value to the company and shareholders.
