Chimata Gold Corp Signs Binding Letter of Intent With Zimbabwe Lithium Company Limited Whose Wholly Owned Subsidiary has Rece...
February 14 2018 - 6:00AM
Chimata Gold Corp. (TSX.V:CAT)
(“
Chimata” or the “
Company”) is
pleased to announce that it has entered into a binding letter of
intent (the “
LOI”) with Zimbabwe Lithium Company
(Mauritius) Limited (“
Zimbabwe Lithium”, or
“
ZIM”), a privately held company incorporated
under the laws of Mauritius. Pursuant to the terms of the LOI,
Chimata will subscribe to the share capital of ZIM for an initial
subscription of 19% of ZIM’s share capital in exchange for the
allocation by Chimata of an amount of shares representing 19% of
its then issued and outstanding share capital to ZIM, such amount
being calculated post closing of the Concurrent Financing, as
defined below, with right to further acquire the remaining issued
and outstanding share capital of ZIM upon the fulfilling of certain
terms and conditions as set out in the LOI, the whole resulting in
ZIM becoming a subsidiary of Chimata (the
“
Transaction”). ZIM will be focused on developing
lithium mining properties and assets located in Zimbabwe (the
“
Assets”) held by ZIM and related companies wholly
owned by ZIM’s principals, one of which having recently signed a
joint-venture agreement with the Zimbabwe Mining Development
Corporation (“
ZDMC”) with respect to the grant of
exclusive development rights for the Kamativi lithium tailings
deposit at the Kamativi Tin mine, Matabeleland North Province,
Zimbabwe. This tailings stockpile has been surveyed to give an
estimated 23,168,000 metric tonnes of historical tailings material
on surface.
About the Transaction
Closing and final acceptance of the contemplated
Transaction is subject to various terms and conditions comprised
of, but not limited to, the completion of a satisfactory due
diligence of the Assets by Chimata and the entering into a
definitive agreement (the “Definitive Agreement”)
between Chimata and ZIM.
In order to finance the contemplated Transaction,
Chimata will complete a non-brokered private placement of up to two
million canadian dollars (CAD$2,000,000) (the “Concurrent
Financing”) by the issuance of units of Chimata (each a
“Unit”) at a price of $0.15 per Unit, each Unit
being comprised of one common share in the share capital of Chimata
and one half common share purchase warrants (each a
“Warrant”), each full Warrant entitling its holder
to purchase one common share in the share capital of Chimata at a
price of $0.25 per common share for a period of 12 months. A
finder’s fee of six percent (6%) may be payable in cash on the
Concurrent Financing to registered market dealers.
The entering into the Definitive Agreement is also
subject to the production by ZIM of a technical report prepared in
accordance with the provisions of NI 43-101 – Standards of
Disclosure for Mineral Projects (the “Technical
Report”) on the Project, as this term is defined below,
given that such Technical Report is satisfactory to
Chimata.
As of this date, Chimata has an exclusive right to
complete the Transaction with ZIM. The Company will provide further
updates regarding the contemplated Transaction within 30 days
following the issuance of this press release.
In commenting about the Transaction, Mr. Groome,
Chairman of Chimata, said, “We are encouraged and excited by the
recent changes in Zimbabwe. We believe that these changes signal an
important investment opportunity. Zimbabwe is very rich in mineral
assets and remains, in my opinion, one of the most attractive
destinations in Africa. We look forward to working with the
Zimbabwe Government, ZMDC and our operating partners at ZIM in
building a rapidly emerging capital efficient lithium supplier to
the world”.
Mr. John McTaggart, Managing Director of Zimbabwe
Lithium, commented, “We are very pleased to have on board a partner
in Chimata. In particular, during this very important and dynamic
transition period in Zimbabwe, we would like to thank the
Government of Zimbabwe, the Honourable Minister of Mines &
Mining Development, our partners at ZMDC and all stakeholders that
have worked with us to bring this project to its current
stage”.
About the Kamativi Mining
Assets
The Kamativi Tailings Lithium Project (the
“Project”) is located outside the village of
Kamativi in Matabeleland North Province, Zimbabwe. The Project,
which is identified as a tailings deposit associated with the
disused Kamativi tin mine, is located approximately 185 kilometres
east-south-east of Victoria Falls, approximately 84 km by tar road
east of Hwange and approximately 310 km northwest of Bulawayo.
Alain Moreau, a “qualified person” as defined by NI
43-101 – Standards of Disclosure for Mineral Projects has approved
the scientific and technical disclosure in this press release.
ON BEHALF OF THE BOARD
Richard Groome
Chairman and Interim President and CEO
Further information regarding the Company can be
found on SEDAR at www.SEDAR.com, or by contacting the Company
directly at (604) 674-3145.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
We seek safe harbor.
Contact:Steve
Cozine866-924-6484scozine@rocketmail.com
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