Gold Stock Alert: Tembo Gold Corp. (TSXV: TEM) Announces Up To $8.657M Strategic Private Placement
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Toronto, Ontario - October 8, 2013 (Investorideas.com Mining stocks newswire) Tembo Gold Corp. (TSXV: TEM) ( FRANKFURT :T23) ("Tembo" or the "Company") is pleased to announce a proposed strategic financing for the Company. The Company proposes to complete a non-brokered private placement (the "Financing") consisting of up to 13,333,334 units (the "Units") at a price per Unit of C$0.15 and up to 44,380,000 subscription receipts (the "Subscription Receipts") at a price per Subscription Receipt of C$0.15 for total gross proceeds of up to C$8.657million with a minimum financing condition of C$7 million.
Each Unit will consist of one common share (each a "Share") and one common share purchase warrant of the Company (each a "Warrant"). Each Warrant will be exercisable to acquire one Share at a price of $0.16 per Share for a period of three years from the issuance of the Units on the initial closing of the Financing.
The main investors subscribing for Subscription Receipts under the Financing will be NAMF II (Mauritius) Limited ("NAMF Mauritius") as to C$1,941,750, NAMF II South African Partnership ("NAMF South Africa") as to C$558,250, Stratex Gold A.G. ("Stratex") as for up to C$1,657,000 and Concept Capital Management Limited ("CCM") as for up to C$2,500,000 (collectively, the "Investor Group"). Certain management members, other insiders, and existing shareholders of the Company will also participate in the Financing for up to C$2,000,000 of Units. None of the members of the Investor Group are currently insiders of the Company.
David Scott, President and CEO of Tembo, states, "We are very pleased with the prospect of having the Investor Group as strategic partners in Tembo. We look forward to their financial support through their investment, and importantly, their input into the technical planning and corporate management of the Company. The synergy of Tembo’s goals and that of the Investor Group could point toward a fruitful and successful future as the prospectivity of the Tembo Project is further explored."
Commenting on the proposed investment Stratex Chairman Christopher Hall said "Stratex is very pleased to announce this exciting strategic investment in conjunction with the New Africa Mining Fund II and Concept Capital Management. The Tembo property is located in the highly prospective Lake Victoria Gold Belt of Tanzania to the northwest of, and next to, the Bulyanhulu Mine. Tembo has built on extensive historic work and artisanal activity with encouraging results from over 35,000m of drilling on half a dozen targets, however, it has yet to report a resource. Stratex and its partners believe they can guide, support and provide the finance for management to focus on priority targets, with infill and step-out drilling, before moving to resource estimation. In line with our restated strategy, we see Tembo as a "tipping point" opportunity, where tightly focussed exploration can accelerate the exploration process. Negotiating and structuring this transaction has been a protracted process and there are still some hurdles to be overcome. However, there has been an immense amount of goodwill on all sides as the financing is clearly in the interests of Tembo and all its stakeholders."
About New Africa Mining Fund II
The New Africa Mining Fund II ("NAMF") is a junior mining venture capital fund which provides capital for early to later stage exploration and mining development projects in all minerals except diamonds and uranium, throughout Africa . NAMF adheres to the common standards and investment practices which have been developed and successfully followed by Private Equity investment firms in other markets. Such practices include due diligence, strict attention to corporate governance and sustainable development policies and a disciplined approach to timely investment realization.
About Stratex International Plc. (AIM:STI)
Stratex is an AIM-listed company focused on the exploration and development of gold and high-value base metals in Turkey , East Africa and West Africa . Listing in January 2006, the company has been positioned to take advantage of the current paucity of exploration activities and the resultant projected shortage in supply of precious and base metals. Since inception Stratex has rapidly amassed a portfolio of high-potential exploration licences in central and western Turkey , Ethiopia and Djibouti , and Senegal and Mauritania , as a result of the company's informed and aggressive approach to terrain analysis and prospect identification.
About Concept Capital Management
CCM, is a private German based Asset Management Company focused on evaluating and investing in Canadian resource companies through equity investments, convertible bonds and gold, silver, and copper off-take agreements.
The strategic intention of the Investor Group is to prioritize continued advancement of the exploration of the Tembo project with an aim to develop a significant resource base. The Board of Directors considers that the introduction of the Investor Group will favorably expand the potential capital base of the Company going forward. As such the Board of Directors of Tembo unanimously recommends that Tembo shareholders consent to the change of control in connection with the Financing. The Investor Group has advised Tembo that it intends for Tembo to remain a public company after completion of the Financing.
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