Chimata Gold Corp Signs Binding Letter of Intent With Zimbabwe Lithium Company Limited Whose Wholly Owned Subsidiary has Rece...
14 Februar 2018 - 1:00PM
Chimata Gold Corp Signs Binding Letter of Intent With Zimbabwe
Lithium Company Limited Whose Wholly Owned Subsidiary has Recently
Been Granted Exclusive Development Rights for the Kamativi Lithium
Tailings Deposit in Zimbabwe
VANCOUVER, British Columbia, Feb. 14,
2018 (GLOBE NEWSWIRE) -- 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 Cozine
866-924-6484
scozine@rocketmail.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Chimata Gold Corp. via Globenewswire
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