Tembo Gold Corp. Completes C$2.95 Million Brokered Tranche of
Equity Financing
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TORONTO, Oct. 25, 2012 /CNW/ - Tembo Gold Corp.
(TSX-V:TEM) ("Tembo" or the "Company") is pleased to announce
that it has issued 5,896,000 units (the "Units") of the
Company at a price of C$0.50 per Unit
for aggregate gross proceeds of C$2,948,000 pursuant to its previously announced
private placement (the "Offering"). The Company expects to
close a second non-brokered tranche of the Offering on or about
October 30, 2012.
Each Unit consists of one common share of the
Company and one-half of one common share purchase warrant (each
whole warrant, a "Warrant"). Each Warrant is exercisable for
one common share of the Company until April
25, 2014 at an exercise price of C$0.80.
Canaccord Genuity Corp., Dundee Securities Ltd.,
Raymond James Ltd., Cantor Fitzgerald Canada Corporation and
Casimir Capital Ltd. (collectively, the "Agents") acted as
agents for and on behalf of Tembo pursuant to an agency agreement
dated as of October 25, 2012.
Pursuant to the terms of the agency agreement, the Agents received
a commission equal to C$206,360 paid
out of the gross proceeds of the Offering (which at the election of
the Agents was received in cash equal to C$203,860 and 5,000 Units) and 412,720 broker
warrants (the "Broker Warrants") each of which is
exercisable to acquire one common share of the Company at a price
of $0.50 until April 25, 2014.
The securities issued are subject to a hold
period expiring February 26, 2013 in
accordance with the rules and policies of the TSX Venture Exchange
and applicable Canadian securities laws and such further
restrictions as may apply under foreign securities laws.
The net proceeds from the Offering will be used
for the exploration and development of the Company's projects in
Tanzania and for general working
capital purposes. The Offering remains subject to the final
approval of the TSX Venture Exchange.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
About Tembo Gold Corp.
Tembo Gold (TSX-V: TEM) is a Canadian publicly listed mineral
exploration company focused on the exploration and development of
gold projects in Tanzania and the
rest of Africa. The Company
currently has 100% interest in the Tembo Gold Project that is
located adjacent to African Barrick's 20Moz Bulyanhulu Mine in the
prolific Lake Victoria Greenstone belt in Tanzania. The Company is led by a highly
experienced team with a proven history of developing, financing,
and operating mining projects in Africa. The company has commenced its 90,000m
drill program on its Tembo Gold Project.
On behalf of the Board of Directors of Tembo,
David Scott, President, CEO and
Director.
Forward-Looking Statements
Certain information set out in this news release constitutes
forward-looking information. Forward looking statements are often,
but not always, identified by the use of words such as "seek",
"anticipate; "plan", "continue; "estimate; "expect", "may, "will",
"intend", "could", "might", "should", "believe" and similar
expressions. In particular, this news release contains
forward-looking statements in respect of the use of the net
proceeds from the Offering, the completion and timing of additional
closings of a non-brokered tranche of the Offering and listing of
the common shares of the Company issuable under the Offering on the
TSX Venture Exchange. Forward-looking statements are based upon the
opinions and expectations of management of the Company as at the
effective date of such statements and, in certain cases,
information provided or disseminated by third parties. Although the
Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
and that information obtained from third party sources is reliable,
they can give no assurance that those expectations will prove to
have been correct. Readers are cautioned not to place undue
reliance on forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
SOURCE Tembo Gold Corp.