Back to all announcements

DJ Tectonic Gold Plc Divestment of Graphite Royalty

 
TIDMTTAU 
 
2 September 2019 
 
                               TECTONIC GOLD PLC 
 
                      ("Tectonic Gold" or the "Company") 
 
          Divestment of Royalty interest in Madagascan Graphite Mine 
 
Tectonic Gold plc (TDIM: TTAU), the Intrusive Related Gold ("IRGS?& 
65533;?) company, is pleased to announce that it has executed agreements 
with SilverStream SEZC ("SilverStream") for the sale of the Company's 2.5% 
royalty interest in the Graphmada graphite mine in Madagascar. 
 
Highlights: 
 
  * Total consideration of up to approximately A$550,000 
 
  * The Purchase is settled in cash and convertible notes in SilverStream 
 
The 2.5% gross concentrate royalty was established in the sale by Tectonic Gold 
of its Graphmada graphite mine in Madagascar in 2016. Following this 
transaction, the Company re-focused on gold exploration. 
 
SilverStream is a privately-held streaming and royalty business with interests 
across Australia, Canada, the U.S., Mexico, Peru, Brazil and Madagascar. 
SilverStream holds a diversified portfolio of royalties and streams over 
precious, base and battery metals projects as well as several strategic equity 
positions. 
 
About Tectonic Gold: 
 
Tectonic Gold is a specialist gold exploration company, focused on the 
identification and delineation of large-scale, multimillion-ounce Intrusion 
Related Gold System ("IRGS") assets. Tectonic Gold holds a number of gold 
discoveries in the New England Orogen in Eastern Australia, a prolific gold 
region that is home to Australia's two largest gold production companies, 
Newcrest Mining and Evolution Mining. 
 
Mr. Brett Boynton, Managing Director - Tectonic Gold Plc 
 
"The divestment of this non-core asset is positive for all stakeholders. Our 
former team at Graphmada inherits a strong institutional partner in 
SilverStream and we will be able to redeploy capital into our core gold 
exploration activities. It has also established a good relationship for 
Tectonic Gold with SilverStream, who have been active investors in the 
Australian gold industry recently. We hope to find other opportunities to work 
with them going forward." 
 
Kyle Floyd, Chief Executive Officer - SilverStream SEZC 
 
"The transaction allows Tectonic Gold to focus on its core business as a 
specialist Intrusion Related Gold System (IRGS) explorer and delivers 
meaningful value to its stakeholders.  For SilverStream this acquisition 
represents growth of our existing royalty portfolio and an exciting interest in 
a low cost/long life graphite producer.  Graphite remains a key component in 
electric vehicle battery technology and a sector in which we continue to build 
exposure." 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
For further information, please contact: 
 
Tectonic Gold plc                                             +61 2 9241 7665 
Brett Boynton 
Sam Quinn 
www.tectonicgold.com 
@tectonic_gold 
 
NEX Exchange Corporate Adviser and 
Broker                                                       +44 20 7469 0930 
Peterhouse Capital Limited 
Mark Anwyl 
 
Financial Adviser and Broker 
 
VSA Capital Limited 
 
+44 20 3005 5004 
 
Andrew Raca - Corporate Finance 
 
Andrew Monk - Corporate Broking 
 
                                     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. 
 
 
 
END 
 

(END) Dow Jones Newswires

September 02, 2019 02:01 ET (06:01 GMT)