Tembo Gold Corp. Announces C$1.0 Million Equity Financing
March 14th, 2013 Toronto, Ontario – Tembo Gold Corp. (TSX .V: TEM) ("Tembo" or the "Company") is pleased to announce that, subject to regulatory acceptance, it will complete a non‐brokered private placement of up to 2,500,000 units (the "Units") to subscribers resident in Canada and certain offshore jurisdictions at a price of $0.40 per Unit for gross proceeds of up to $1,000,000. Each Unit will consist of one common share and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each such Warrant will entitle the holder to purchase one common share of the Company at a price of $0.60 per common share for a period of 36 months from the closing date of the Offering. Securities issued under the Offering will be subject to a four month hold period from the date of closing.
As an effort to minimize shareholder dilution in the current market environment, the company has been working to secure and alternate form of financing from the previously announces and canceled financing dated February 6, 2013. As a result of these efforts, the majority participants of this financing consist of management, insiders and significant long term shareholders of the Company.
Tembo Gold President & CEO, David Scott stated, “We are very pleased to see our management team and long term shareholders continue to show support through their participation of this financing. These are very exciting times for Tembo as we eagerly anticipate the 2013 drilling program which will is designed delineate resources and extend the depth and strike of high grade mineralization at Ngula 1.”
The Company has received all subscription agreements and will be making all required filings in order to receive regulatory acceptance of this financing. In connection with the Private Placement, Tembo may, subject to regulatory acceptance, pay a finder's fee to certain arm's length parties on portion of the proceeds raised.
The Offering is subject to acceptance by the TSX Venture Exchange and other customary conditions for transactions of this nature. The net proceeds from the Offering will be used to continue the mineral exploration activities of the Company and for general working capital purposes.
About Tembo Gold Corp Tembo Gold Crop (TSX-V: TEM) is a Canadian publicly-listed mineral exploration company with a 100% interest in the Tembo Gold Project which is located adjacent to African Barrick's 14Moz Bulyanhulu Gold Mine in the prolific Lake Victoria Greenstone belt in Tanzania. Tembo’s focus is the discovery and development of world-class 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.
On Behalf of the Board of Directors of Tembo,
David Scott President & CEO
For more information please contact:
Marc Cernovitch Director & VP Business Development Phone: 416.619.9010 Email: [email protected] NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE