After the close of trading in Canada yesterday, Tembo Gold Corp (TSXV: TEM; FRA: T23A) confirmed that it has received the first of three tranches of a strategic private placement from the Tanzanian Taifa Group. As agreed on 10 August this year, Tanzanian billionaire Rostam Aziz, who owns Taifa, has paid in the first CAD 3,520,000 of a total CAD 11.52 million. The 16,000,000 new Tembo shares subscribed for will be issued at a price of CAD 0.22. The closing price of Tembo yesterday was CAD 0.18.
Taifa was founded in 1987 as a construction and earthmoving company in Mbeya, Tanzania. Since then, the company has grown to become the largest locally owned construction and mining company in Tanzania, with prominent companies such as Petra, De Beers, Barrick and AngloGold Ashanti as partners.
Imwelo takeover making progress
At the same time, the takeover of the production-ready Imwelo open-cast mining project in Tanzania is progressing. The company is working to obtain the necessary regulatory approvals in Tanzania to finalise the acquisition of the Imwelo property, according to the brief announcement.
The Imwelo project is a gold project in northern Tanzania and is located immediately west of Anglogold Ashanti’s Geita gold mine. An updated Pre-Feasibility Study (“PFS”) was completed in 2021 by Australian Measured Group Pty Ltd, which includes mine design, mine planning, scheduling, reserve estimation and costing. The project holds a Tanzanian Mining Licence (ML538/2015, “ML”) and is fully permitted for the commencement of mine construction and production. The project resource comprises seven mineralised sites that have been drilled and includes 42,000 ounces of Au at a measured grade of 3.15 g/t, 95,700 ounces of Au at an indicated grade of 1.95 g/t and 153,900 ounces at an inferred grade of 1.53 g/t for a total of 291,600 ounces of Au.
Conclusion: Paper is patient. Money talks! There can no longer be any doubt about the seriousness of Taifa's intentions after the transfer of the first instalment. Through the partnership with Taifa Mining, Tembo Gold is repositioning itself strategically. The two outstanding tranches at higher share prices are linked step by step to the successful takeover of the production-ready Imwelo project and the start of work on the project. With the local partner Taifa at its side, Tembo has the best chances of becoming a favoured vehicle for the consolidation of stranded gold assets in Tanzania in the future. Experience shows that authorisation procedures in Tanzania take time. However, as the successful Tembo deal with Barrick has shown in the past, they are ultimately predictable. The Imwelo takeover is likely to take until next spring to finalise. After that, nothing will stand in the way of Tembo's dynamic growth. Patient investors are likely to be rewarded.
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