Tectonic Gold Plc Mining Permit Granted
August 31 2022 - 2:00AM
UK Regulatory
TIDMTTAU
31 August 2022
TECTONIC GOLD PLC
("Tectonic Gold" or the "Company")
MINING PERMIT GRANTED
Tectonic Gold plc (TDIM: TTAU), is pleased to announce that Whale Head Minerals
Pty Ltd ("Whale Head"), the Company's Heavy Mineral Sands ("HMS") Joint Venture
("JV") in South Africa, with Kazera Global Investments Plc ("Kazera") (AIM:
KZG), has been awarded a Mining Permit .
Highlights:
* Mining Permit awarded to Whale Head Minerals Pty Ltd
* Tectonic holds a 40% economic interest in Whale Head
+ 10% non-diluting equity interest
+ 30% economic interest via Black Economic Empowerment ("BEE") partner
earn out
* £150 million Net Present Value from independent expert report commissioned
by JV partner
* 3.11 million tons JORC Indicated Mineral Resource at a grade of 61.2% HMS
* Additional Prospecting Right neighbouring permit, with area over 30 times
larger, also under application
Mr. Brett Boynton, Managing Director - Tectonic Gold Plc
"We are very pleased to have the Mining Permit finalised and are looking
forward to seeing this project brought into production. We worked closely with
Kazera and our local BEE partners to achieve this outcome and it is a great
example of local and international partners creating opportunity in South
Africa in the mining industry. This project complements our existing diamond
mining joint venture on the South African Government diamond mining site and
offers the opportunity to grow into a multi-generational strategic minerals
project for the region.
Tectonic retains a 10% non-diluting equity interest from the previous sale of
60% of Whale Head to Kazera. In addition, Tectonic has sold 30% to a consortium
of local BEE partners, with this sale to be funded over time from a share of
the profits. The BEE syndicate includes entities controlled by Dr Gil Mahlati,
a well-known South African business leader who has been appointed Chairman of
Whale Head and Dr Dempsey Naidoo, also a high profile South African
businessman. Dr Naidoo had a successful career with Anglo American, leading its
Mineral Sands business before moving on to build one of the most successful
engineering groups in Africa. He has also been appointed to the Board of Whale
Head. These partners bring significant profile to what we expect to become a
major project for the regional economy.
The initial £150 million valuation of the project does not include the
neighbouring beach area which is under permit application. This much larger
area provides upside to the project once the Whale Head beach zone is brought
into production.
Mining of mineral sands in this area has historically been precluded by diamond
mining activity and the necessity for strict security protocols around those
operations. Despite the site being a well-established mining operation with
almost 100 years of diamond mining history, the mineral sands have not been
exploited. Whale Head will now mine high grade HMS zones with simultaneous
diamond extraction in a first of its kind operation for the site.
The alluvial sands containing the diamonds and HMS are mined using dredging and
digging equipment and processed using water and gravity separation. It is an
environmentally friendly operation with no explosives or processing chemicals.
The project will offer a range of job creation opportunities on site and in
support.
It is anticipated that Whale Head will start operations and sell a concentrate
until on site processing facilities have been built. This will likely be in
partnership with a major international mineral sands production and sales
group.
This is a great outcome for the Alexander Bay community as we will now see new
economic development and it is a great outcome for our partners and
shareholders."
For further information, please contact:
Tectonic Gold plc +61 2 9241 7665
Brett Boynton
Sam Quinn
www.tectonicgold.com
@tectonic_gold
Aquis Stock Exchange Corporate Adviser and
Broker +44 20 3005 5004
VSA Capital Limited
Andrew Raca, Pascal Wiese - Corporate
Finance
Andrew Monk - Corporate Broking
Ends
END
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