Tembo GOLD Announces Completion of Sale of Non-Core Licences to Barrick GOLD and Strategic Equity Investment
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TEMBO GOLD ANNOUNCES COMPLETION OF SALE OF NON-CORE LICENCES TO
BARRICK GOLD AND STRATEGIC EQUITY INVESTMENT
Vancouver, April 22, 2022 – Tembo Gold Corp. (TSXV: TEM) (“ Tembo” or the “Company”) is
pleased to announce that it has completed its previously announced sale of certain non- core
prospecting licenses in Tanzania (the “ Licenses”) with Barrick Gold Corporation (TSE: ABX;
NYSE: GOLD) (“Barrick”) and Bulyanhulu Gold Mine Limited (“Buly”), a subsidiary of Barrick (the
“Transaction”), in consideration for: (i) US$6,000,000; (ii) contingent payments to be based on
the inferred, indicated and measured gold mineral resources identified in the areas of land which
are covered by the Licenses (the “Licence Area”) up to an aggregate amount of US$45,000,000;
and (iii) a requirement for Buly to invest a minimum of US$9,000,000 in the Licence Area over the
course of the four years following the completion of the Transaction.
The Licences are located in areas on which Tembo has not previously focused its exploration
activities. Tembo retains its core licence on which all exploration activities over the past two drilling
campaigns have been conducted, and on which there remains a significant number of unt ested
new targets, as well as the three prime targets on which the bulk of the 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. We look forward to the results
of the two exploration programs that will be running concurrently and expect first news of our
drilling to be released within eight weeks of commencement of drilling. Many thanks to our patient
and committed shareholders who helped us keep Tembo going during the long period of care and
maintenance.”
Concurrently with the completion of the Transaction, Buly subscribed for, on a non- brokered
private placement basis, 5,518,764 common shares of Tembo (the “Common Shares”) at a price
of C$0.27 per Common Share (the “ Private Placement”) resulting in a pro forma ownership of
5.5% of Tembo. The Company intends to use the net proceeds from the Private Placement for
general working capital and project related costs including drilling and operational field expenses.
The Common Shares issued to Buly are subject to a four month and one day statutory hold period.
INFOR Financial Inc. acted as financial advisor to the Company in connection with the
Transaction. The Private Placement is subject to the final approval of the TSX Venture Exchange
(“TSXV”). The Company has obtained the required regulatory approvals in Tanzania for the
Transaction.
About Tembo Gold Corp.
Tembo is a Canadian publicly listed mineral exploration company (TEM on the TSX Venture
Exchange) with a 100% interest in the Tembo Gold Project. Tembo’s focus is the discovery and
development of 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.
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On Behalf of the Board of Directors of Tembo,
David Scott
President & CEO
Phone: +255 767 366 146
Email: [email protected]
For more information please contact:
Simon Benstead
Director & VP Corporate Development
Phone: 604-685-9316
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.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking information" within the meaning of applicable
Canadian securities legislation, including: the anticipated benefits and impacts of the Transaction
and the Private Placement on Tembo , anticipated use of proceeds from the Private Placement,
the Company’s objectives, goals and exploration activities conducted and proposed to be
conducted at the Company’s properties; future growth potential of the Company, including
whether any proposed exploration programs at any of the Company’s properties will be
successful; exploration results; and future exploration plans. All statements in this news release
that address events or developments that we expect to occur in the future are forward -looking
statements. Forward- looking statements are statements that are not historical facts and are
generally, although not always, identified by words such as "expect", "plan", "anticipate", "project",
"target", "potential", "schedule", "forecast", "budget", "estimate", "intend" or "believe" and similar
expressions or their negative connotations, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such forward-looking statements are based on the opinions
and estimates of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of
which are beyond Tembo’s control, including risks associated with or related to: future exploration
plans, the volatility of metal prices and the Common Shares ; changes in tax laws; the dangers
inherent in exploration, development and mining activities; the uncertainty of reserve and resource
estimates; not achieving development or production, cost or other estim ates; actual exploration
or development plans and costs differing materially from the Company’s estimates; the ability to
obtain and maintain any necessary permits, consents or authorizations required for mining
activities; environmental regulations or haz ards and compliance with complex regulations
associated with mining activities; climate change and climate change regulations; fluctuations in
exchange rates; the availability of financing; financing and debt activities; operations in foreign
and developing countries and the compliance with foreign laws, including those associated with
operations in Tanzania and including risks related to changes in foreign laws and changing
policies related to mining and local ownership requirements or resource nationalization generally,
including in response to the COVID -19 outbreak; remote operations and the availability of
adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary
for mining operations; shortages or cost increases in necessary equipment, supplies and labour;
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regulatory, political and country risks, including local instability or acts of terrorism and the effects
thereof; the reliance upon contractors, third parties and joint venture partners; challenges to title
or surface rights; the dependence on key personnel and the ability to attract and retain skilled
personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions;
litigation risk; competition with other mining companies; community support for Tembo’s
operations, including risks related to strikes and the halting of such operations from time to time;
conflicts with small scale miners; failures of information systems or information security threats;
the ability to maintain adequate internal controls over financial reporting as required by law;
compliance with anti-corruption laws, and sanctions or other similar measures; social media and
Tembo’s reputation; and other risks disclosed in the Company’s public filings.
Tembo’s forward-looking statements are based on the opinions and estimates of management
and reflect their current expectations regarding future events and operating performance and
speak only as of the date hereof. Tembo does not assume any obligation to update forward -
looking statements if circumstances or management's beliefs, expectations or opinions should
change other than as required by applicable law. There can be no assurance that forward-looking
statements will prove to be accurate, and actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking statements. Accordingly,
no assurance can be given that any events anticipated by the forward- looking statements will
transpire or occur, or if any of them do, what benefits or liabilities Tembo will derive therefrom.
For the reasons set forth above, undue reliance should not be placed on forward- looking
statements.