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

 
TIDMTTAU 
 
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 GBP 
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 GBP100,000 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                                             +61 2 9241 7665 
Brett Boynton 
Sam Quinn 
www.tectonicgold.com 
@tectonic_gold 
 
AQSE Corporate Adviser and Broker 
Peterhouse Capital Limited                                   +44 20 7469 0930 
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

June 04, 2020 07:30 ET (11:30 GMT)