Tombola to Generate First Cash Flow
Brisbane, Nov 28, 2022 AEST (ABN Newswire) - Tombola Gold Ltd (
ASX:TBA) is pleased to announce that the Company has achieved a significant milestone by reaching agreement with Ilwella Pty Ltd, one of the Company's substantial shareholders, for the pre-sale of the first 200 ounces of gold to be produced. Whilst this transaction is expected to represent a relatively small portion of the first gold pour, it is an important milestone in the Company's ongoing transformation from explorer to producer. The Company expects to receive cash of approximately $500,000 this week as a result of the pre-purchase transaction. The Australian Bullion Company is currently contracted to purchase the remaining ounces with payment 48 hours from collection.
Tombola Gold Managing Director, Byron Miles, commented:
"We are extremely excited to have achieved first cash flow of approximately half a million Australian dollars, from the presale of a small proportion of Tombola's first gold pour. With the GAM Plant refurbishment nearing completion, this presale demonstrates confidence as the Company moves from an explorer to producer."
"This marks a substantial milestone for Tombola and directly aligns with our strategy of becoming a significant Australian gold producer. This achievement is the fruition of the significant work and dedication of the Tombola team over 2022, and I would like to thank shareholders for their support to date and the Tombola team for their unwavering and diligent commitment to the project."
"The 2023 year is going to be huge for the Company as we continue to ramp up production with two processing plants coming online, via vats and the Lorena processing facility."
Through considerable hard work over the past months, the refurbishment of the GAM Plant is nearing completion, with the first gold pour to be completed in the coming weeks. In 2023, the Company will increase production with two plants becoming operational, being the VATS and the Lorena CIL plant, with the aim of increasing Tombola's production capacity and providing continuity of gold production.
Ilwella Pty Ltd is a substantial shareholder of Tombola, and the underwriter of the Company's current $1m SPP, which is scheduled to close this Friday, 2 December 2022. The Company confirms that Ilwella has not held a greater than 10% interest in the Company in the last six months, and is not expected to emerge as a 10% shareholder as a result of its underwriting exposure.
About Tombola Gold Ltd
Tombola Gold Ltd (ASX:TBA) is a company assembled by experienced, exceedingly well-qualified and all very well rounded team members that have previously floated exploration companies which achieved major resource discoveries and success. Between the Tombola team members, Tombola as a company have well over 100 years of accumulated experience in the mining, exploration and resource sector. Tombola principal objective is to acquire assets to explore for and develop a large IOGC or porphyry deposit funded by low-risk gold production resources. To that end, Tombola has a license covering 970 sq km prospective for gold/copper in the Mount Bryan-Red Banks-World's End area near Burra in South Australia; with strategic agreements with Queensland Mining Corporation.
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