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TTAU - Tectonic Gold News Story

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Last Trade - 03/03/21

Sector
Basic Materials
Size
Micro Cap
Market Cap £9.07m
Enterprise Value £9.24m
Revenue £219k
Position in Universe 1602nd / 1807

Tectonic Gold Plc: Sale of Majority Interest in Tectonic South Africa

Thu 4th June, 2020 12:30pm
4 June 2020

TECTONIC GOLD PLC

(“Tectonic Gold” or the “Company”)

SALE OF MAJORITY INTEREST IN TECTONIC SOUTH AFRICA, AUDIT UPDATE AND PLANNED
REQUEST FOR RESUMPTION OF TRADING

Tectonic Gold plc (TDIM: TTAU) is pleased to announce that it has sold a
majority interest in the Company’s South African projects to AIM listed
Kazera Global Plc (“Kazera”). As announced on 18 December 2019, Tectonic
will retain a non-diluting 10% interest in Tectonic South Africa Pty
(rebranded Deep Blue Minerals Pty Ltd, “DBM”) alongside the 26% holding of
incoming Black Economic Empowerment (“BEE”) partners. Kazera will hold a
64% interest and has raised £750,000 to fund the diamond mining project into
production.

In addition, Tectonic has incorporated a 100% owned South African subsidiary,
Whale Head Minerals Pty Ltd, and submitted an application for a Mining Permit
to mine Heavy Mineral Sands (“HMS”) within the Alexkor/PSJV diamond mining
area to mine ores with DBM for the dual commercialisation of diamonds and HMS
from diamondiferous and mineralised alluvial beach sands. Kazera has committed
to buying a majority interest in WHM also, with Tectonic retaining a
non-diluting 10% interest, subject to the approval of the Mining Permit under
application.

Tectonic has received a £100,000 payment in fulfilment of the option terms.

The project will continue to be managed by the existing Board and Management
of DBM, with on-going oversight from Tectonic director Dennis Edmonds, who has
also been appointed to the Board of Kazera to lead the development of these
projects.

Kazera operates a tantalite mining project at Tantalite Valley, approximately
250km east of Alexander Bay on the Namibian side of the Orange River. With an
established regional base of operations and local management the two projects
can be efficiently operated.

With the transaction now completed, the remaining items in the Tectonic Gold
Audit for the 2019 year end will be finished as a priority and after the
filing of accounts a request will be made for lifting the suspension from
trading on the AQSE Growth Market as soon as practicable.

Signature Gold Pty Ltd, the Company’s 100% owned Australian subsidiary has
this week submitted an application to the Queensland Government for a grant to
fund drilling expenses of up to A$200,000 at the Company’s Mt Cassidy
project.

Mr. Brett Boynton, Managing Director – Tectonic Gold plc

“We are very pleased to get this transaction closed, despite the delays due
to COVID, and to see the South African projects funded for production. We
remain a significant shareholder of Deep Blue and expect the remainder of the
transaction with the sale of Whale Head to follow in due course. This will
leave Tectonic with a sizeable economic interest in a funded diamond and heavy
mineral sands project which will in turn be able to provide additional funding
for our core gold exploration activities in Australia. We have recently put in
an application for additional government funding and hope to be able to get
back into the field and drill targets at our Mt Cassidy project in the second
half of the year.

The Directors of the Company accept responsibility for the contents of this
announcement.”

For further information, please contact:

 Tectonic Gold plc Brett Boynton Sam Quinn www.tectonicgold.com  @tectonic_gold                                            +61 2 9241 7665 
 AQSE Corporate Adviser and Broker  Peterhouse Capital Limited Mark Anwyl                                                 +44 20 7469 0930 
 Financial Adviser and Broker  VSA Capital Limited  Andrew Raca – Corporate Finance Andrew Monk – Corporate Broking       +44 20 3005 5004 
                                                                                                                                           

Ends

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory
Information Service, this inside information is now considered to be in the
public domain.



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