PRESS RELEASES 12/3/2013 1:58:08 AM | Marketwired News

Tembo Gold Corp. Completes C$5.95 Million Non-Brokered Tranche of Equity Financing

2013-12-03T06:58:08+00:00

 

TORONTO, ONTARIO--(Marketwired - Dec. 3, 2013) - Tembo Gold Corp. (TSX VENTURE:TEM)(FRANKFURT:T23) ("Tembo" or the "Company") is pleased to announce that it has issued 59,488,901 units (the "Units") of the Company at a price of C$0.10 per Unit for aggregate gross proceeds of C$5,948,890.10 pursuant to its previously announced private placement (the "Offering") in the news release dated November 15, 2013. The Company expects to close a second non-brokered tranche of the Offering towards the middle of December 2013. Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable for one common share of the Company until December 2, 2016 at an exercise price of C$0.12.

As previously indicated, the main investors who subscribed for Units under the Offering were NAMF II (Mauritius) Limited as to C$1,941,750, NAMF II South Africa Partnership as to C$558,250, Stratex Gold A.G. as to C$1,750,000 and Concept Capital Management Limited as to C$1,000,000 (collectively, the "Investor Group"). As a result of the Offering the members of the Investor Group have become insiders of the Company and the Offering has resulted in a change of control for which the Company has obtained the written consent of shareholders holding over 50% of its issued and outstanding common shares in accordance with the policies of the TSX Venture Exchange.

David Scott, President and CEO of Tembo, states, "Tembo has secured financing at a difficult time for exploration juniors. We believe that this achievement reflects the quality of the Tembo project, the favorable mining investment climate of Tanzania where we operate, and our team of professionals who have brought the company to where we now are. The partnerships being created through this financing with NAMF and Stratex will ensure that the project receives the additional technical and scientific attention it deserves, and with the long-term financial backing of the entire Investor Group, as warranted by results, we look forward to realizing the value of the project for our loyal shareholders."

The securities issued are subject to a hold period expiring April 3, 2014 in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such further restrictions as may apply under foreign securities laws. 

The net proceeds of the Offering will be used by the Company to fund ongoing exploration costs on its properties in Tanzania and for working capital purposes. The Offering remains subject to the final approval of the TSX Venture Exchange.

About Tembo Gold Corp.

Tembo is a Canadian publicly listed mineral exploration company with a 100% interest in the Tembo Gold Project which is located adjacent to African Barrick's Bulyanhulu Gold Mine in the prolific Lake Victoria Greenstone belt in Tanzania. Tembo's focus is the discovery and development of gold 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.

On Behalf of the Board of Directors of Tembo,

David Scott, President & CEO

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

Forward-Looking Statements

Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate; "plan", "continue; "estimate; "expect", "may, "will", "intend", "could", "might", "should", "believe" and similar expressions. In particular, this news release contains forward-looking statements in respect of the use of the net proceeds from the Offering, the completion and timing of additional closings of a non-brokered tranche of the Offering and listing of the common shares of the Company issuable under the Offering on the TSX Venture Exchange. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements.

Tembo Gold Corp.

Marc Cernovitch

Director & VP Business Development

416.619.9010

mcernovitch@tembogold.com

www.tembogold.com