Central African Launches Carbon Credit Revenue Initiative and Announces Private Placement
Central African Gold Inc. |Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 1
CENTRAL AFRICAN LAUNCHES CARBON CREDIT REVENUE INITIATIVE AND
ANNOUNCES PRIVATE PLACEMENT
• CAGR begins implementation of near-term carbon credit revenue opportunity.
• Allows CAGR to monetize 160km/sq of arable land that would otherwise sit idle.
• Addresses multiple ESG related concerns in DRC including environmental
sustainability, sustainable revenue, and social commitments to domestic
employment.
Vancouver, British Columbia - (August 18, 2021) – Central African Gold Inc. (TSXV:
CAGR; FSE: BC2; OTCQB: NDENF) (the “Corporation” or “Central African Gold”) is
pleased to announce the Corporation is evaluating the feasibility of implementing a carbon credit
revenue stream on its vast land position in the Democratic Republic of Congo (DRC). Carbon
credits are an ideal solution to address multiple ESG related concerns in the in the DRC,
specifically environmental sustainability, sustainable revenue, and social commitments to
domestic employment. Central African Gold is working closely with two internationally
recognized leaders in the carbon credit accreditation and project engineering space to structure
the CAGR Carbon Plan (CAP).
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Central African Gold has six 100% owned mineral concessions, with over 160 km/sq of surface
area, containing both forests and arable lands to support carbon credit revenue generation and
ready access to further large tracts of arable land near the equator, at approximately the same
latitude as the Amazon Rain Forest. Carbon credits should be an additional sustainable revenue
center for both Central African Gold and our DRC partners, while meeting essential ESG
obligations. Central African Gold, with its teams extensive DRC background, has the experience
to successfully develop and implement a robust carbon credit platform.
Beyond the ESG related benefits of Central African Golds carbon credit initiative, there is an
immediate revenue opportunity, allowing the Corporation to monetize its assets that would
otherwise sit idle during the mineral exploration and feasibility phase. Initial carbon sink
opportunities exist both in leveraging the development of large tree farm ecosystems as well as
solar PV farms which would be in close proximity to existing mining operations that are
desperate for cleaner power to meet their own ESG obligations.
About Carbon Credits
A carbon credit is a tradable permit or certificate that provides the holder of the credit with the
right to emit one ton of carbon dioxide or an equivalent of another greenhouse gas and is
essentially an offset for industries producing green-house gas. The obligation to meet reduced
Central African Gold Inc. |Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 2
emission standards is now being imposed in most countries with significant penalties for non-
compliance. If an industry cannot meet its required levels, there is an efficient global
marketplace developing where these companies can purchase carbon credits to offset their
emissions. There are three basic types of carbon credit: those from reduced emissions through
efficiency such as solar photovoltaic plants, wind and other non-fossil fuel energy sources;
removed emissions through carbon capture and planting forests or other vegetation providing a
“carbon sink”; and avoiding emissions by such methods as stopping de-forestation. All three of
these carbon credit initiatives are applicable and can be successfully implemented in the DRC.
Yves Kabongo, CEO stated: “Central African Gold through its long and continued involvement
in the resource rich DRC, will become an important supplier of battery metals (copper, cobalt,
and nickel) to the exploding clean technology sector propelled by the growing wave of
electrification and decarbonizing energy systems as alternatives to fossil fuels. As Central
African Gold continues to develop its current energy metal initiatives, our carbon credit platform
could provide a revenue stream in a relatively short timeframe. We also consider our ESG
obligations to be an important part of our business and a carbon credit solution is an obvious and
logical adjunct to our mining development operations. Clean energy and carbon credits run hand
in hand. Clean energy technologies require more minerals than their fossil fuel-based
counterparts. A typical EV requires six times the mineral inputs of a conventional car, and an
onshore wind plant requires nine times more mineral resources than a gas-fired power plant.
Since 2010, the average amount of minerals needed for a new unit of power generation capacity
has increased by 50%. Copper, nickel, and cobalt are crucial to battery performance, longevity,
and energy density. Electricity networks require massive amounts of copper being a cornerstone
for all electricity-related technologies. The shift to a clean energy system is set to drive a huge
increase in the requirements for these minerals, meaning that the energy sector is emerging as a
major force in mineral markets. To meet greenhouse gas and carbon emissions goals, clean
energy technologies’ demand rises significantly over the next twenty years to over 40% for
copper and 60% to 70% for nickel and cobalt. EVs and battery storage are set to take over from
stainless steel as the largest end user of nickel by 2040. Central African Gold is well positioned
to profit from the explosively expanding clean technology and carbon credit sectors.
Private Placement
The Corporation announces it is amending the terms of the private placement announced on June
29, 2021. The Corporation intends to complete a non -brokered private placement (the
“Financing”) of up to 8,000,000 units (each a “ Unit”) at a price of CAD $0.15 per Unit for
aggregate proceeds of up to CAD $1,200,000. Each unit will consist of one common share of the
Corporation (a “Share”) and one Share Purchase Warrant (a “ Warrant”). Two Warrants will be
exercisable into one Share at an exercise price of CAD $0.25 per Share for a period of two years
from the date of issuance.
The proceeds from the Financing will be used for general working capital purposes. In connection
with the Financing, the Corporation may pay finder’s fees in cash or securities or a combination
of both, as permitted by the policies of the TSX Venture Exchange.
Central African Gold Inc. |Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 3
The securities issued pursuant to the Financing will be subject to a hold period under applicable
securities laws, which will expire four months plus one day from the date of closing of the
Financing. Closing of the Financing is subject to receipt of all necessary corporate and
regulatory approvals, including approval of the TSX Venture Exchange.
The Financing may constitute a "related party transaction" under Multilateral Instrument 61- 101
Protection of Minority Security Holders in Special Transactions ("MI 61-101") as the investors
in the Financing may be parties closely related to the Corporation. The related party transactions
are exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to
subsection 5.5(a) of MI 61-101 and exempt from the minority approval requirements of Section
5.6 of MI 61-101 pursuant to subsection 5.7(1)(a) of MI 61-101, as the fair market value of the
transactions contemplated under the Financing do not exceed 25% of the Corporation’s market
capitalization. A material change report as contemplated by the related party transaction
requirements under MI 61-101 was not filed more than 21 days prior to closing of the
transactions as the Financing is required shortly after the terms of the Financing were finalized to
be able to meet the Corporation's anticipated short-term cash requirements.
About Central African Gold Inc.
Central African Gold is a natural resource company with a primary focus on the acquisition,
exploration, development, and operation of battery metal copper, cobalt, and nickel mineral
projects in the DRC. The implementation of a carbon credit program will complement battery
metals operations and meet important ESG requirements. Central African Gold has the intention
to acquire interests in additional concessions or relinquish concessions in the normal course of
business. Central African Gold has an experienced management team located in the DRC.
For further information, please contact:
Stephen Barley, Executive Chairman
Phone: (604-834-2968)
Email: [email protected]
Website: www.centralafricangold.com
Reader Advisory
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain “forward-looking information” within the meaning of applicable securities laws including
the successful implementation of a carbon credit program; the acquisition o f additional copper, cobalt, and nickel
projects; the establishment of profitable revenue centers for the Corporation and its DRC partners; the continued growth
of the clean technology and carbon credit sectors ; and the closing of the Financing . Although the Corporation believes
considering the experience of its officers and directors, current conditions and expected future developments and other
factors that have been considered appropriate, that the expectations reflected in this forward -looking informati on are
reasonable, undue reliance should not be placed on them as the Corporation can give no assurance that they will prove
to be correct. Actual results and developments may differ materially from those contemplated by these statements. The
statements in this press release are made as of the date of this release. The Corporation undertakes no obligation to
comment on analyses, expectations or statements made by third parties in respect of the Corporation its securities, or its
financial or operating resu lts.