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Tombola Gold Ltd (TBA.AX) Binding Term Sheet Executed for Lorena Project Acquisition
Brisbane, Australia, June 20, 2022 - (ABN Newswire) - Tombola Gold Ltd (ASX:TBA) is pleased to announce that it has signed a binding Term Sheet to acquire 100% of the Lorena Processing Facility ("Lorena"), located only 30km from the Company's 100% owned flagship Mt Freda Gold Mine in Cloncurry, Queensland (the "Acquisition").
Lorena includes an integrated CIL (Carbon In Leach) processing facility capable of treating both gold and copper ore and an associated tenement package. A map showing the Company's existing tenement package and the Lorena assets is included in this release. A summary of the Term Sheet is attached as an Appendix to this release*.
The Acquisition is expected to enable the Company to undertake studies to optimise its gold production capacity by July 2023. Importantly, the Acquisition is structured so that it enables Tombola to utilise its current cash reserves in a more effective way, without incurring large additional capital construction costs that would otherwise be required to build a CIL plant and tailings facility of this size.
Tombola Gold Managing Director, Byron Miles, commented:
"The acquisition of the Lorena Processing Facility delivers a step change for us in our targeted gold production. Importantly, it enables Tombola to commence planning to determine gold production rates as well as gold-optimisation planning studies. The Company aspires to significantly increase its production potential in terms of expected throughput and recovery rate, once both the original vat leaching and the Lorena facility are on stream in 2023.
The acquisition terms were negotiated to allow us to utilise our existing cash reserves and cash flow to fund the acquisition from near term gold production, which limits dilution and delivers a highly positive result for shareholders. This is another important step in delivering on our aspiration to become a meaningful Australian gold producer as we fast track to near term gold production from Lorena in Q4, 2022."
The Lorena Mine and Processing Facility is located 13km from Cloncurry on the Flinders Highway, and was commissioned in 2017 by a Joint Venture which included Malachite Resources and Chinova Resources.
Operations continued at Lorena until late 2021, after which it was placed in care & maintenance pending a desire by the owners to sell the operation.
Primarily a Gold CIL Processing facility with the capacity to treat copper bearing ore, over the coming months Tombola intends to recommission the plant, expand tailings capacity, and transport ore from the Golden Mile operation to Lorena along with continuing to vat leach treat the balance of minable reserves at Mt Freda.
Tombola is currently working with several third party consultants and advisors who are assisting the Company with its plans to recommission and expand the facility with a relatively low capital expenditure before commencing treatment of Mt Freda and Golden Mile ore.
*To view tables and figures, please visit:
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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