True North Tenement Acquisition Restructure
Brisbane, April 12, 2023 AEST (ABN Newswire) - The Board of Directors of Tombola Gold Ltd (
ASX:TBA) wishes to advise that the Company's original Asset Sale Agreement with True North Copper Pty Ltd (TNC) as announced on 16 September 2022, which had yet to settle pending finalisation of a number of pre-completion deliverables (such as landholder agreement assignments), has now been mutually terminated. As part of these negotiations, the parties have reached consensus on a restructured transaction.
Accordingly, the Company has executed a Deed of Termination with TNC which terminates the previous Asset Sale Agreement, as announced to the market on 16 September 2022, with the Company to receive a 50% refund of the original 'non-refundable' $50,000 deposit.
The Company, its subsidiary Tombola Tenements Pty Ltd (Tombola Tenements) and TNC have also executed an Option Deed whereby Tombola Tenements is granted an option to purchase a 100% interest in EPM12409 and ML100111 (Wynberg Tenements), together with all documents, information and material contracts in relation to them, for $2,000,000 plus GST (if applicable), payable in cash.
Accordingly, under these revised transaction arrangements, the Company will no longer acquire an interest in the Wallace Project (ML 1000777 and ML 90236) or have any interest in its resources. A map outlining the revised combined tenement footprint, should the option be exercised, is attached* as Appendix A, and the updated Mineral Resource Statement relevant to this transaction is attached as Appendix B (Table 1 - Current Proposal and Table 2 - Terminated Transaction).
The option in favour of the Company may be exercised at any time prior to 28 March 2025, subject to the Company and Tombola Tenements complying with the terms of the current Equipment Hire Agreement (Gold Processing Plant) executed between the parties with regard to the use of the GAM plant, which is due to be decommissioned by 30 April 2023. The asset sale agreement formed upon any exercise of the option is otherwise on similar terms to the previous Asset Sale Agreement as announced on 16 September 2022.
The Wynberg Tenements will be acquired subject to a 2% Net Smelter Royalty in favour of Round Oak Minerals Pty Ltd, which will remain in place after completion.
Tombola Gold Managing Director, Byron Miles, commented:
"Restructuring this arrangement with True North Copper gives the Company more flexibility with regard to the timing of completion, and has enabled us to focus only on the Wynberg project area which we believe best compliments the Company's existing project and resource inventory."
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/1O1JQYJQ
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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