Mr. Richard Groome reports
USD $9,500,000 FINANCING FACILITY TERM SHEET SIGNED WITH TRANSAMINE TRADING S.A.
FOR THE KAMATIVI LITHIUM TAILINGS PROJECT
Chimata Gold Corp. has signed a term sheet between Transamine Trading SA and the Kamativi Tailings Company Pvt. Ltd. for a $9.5-million (U.S.) finance and offtake
facility for concentrate produced from the Kamativi tailings lithium project. Chimata Gold's local
Zimbabwean partner holds a
60-per-cent equity stake in KTC, which is a joint venture, with the remaining 40 per cent of the equity being held by Kamativi
Tin Mines Pvt. Ltd.
Salient points of the term sheet are set out as follows:
- A total of $9.5-million (U.S.) debt financing will be provided as a lump-sum payment on completion of the relevant
conditions precedent by each of Transamine and KTC.
The tenor of the facility is aligned with the construction project plan and allows sufficient time for
repayment from free cash.
The use of proceeds of the financing facility will be put toward the construction of the phase 1 processing
plant to be constructed for the project as well as working capital.
KTC will produce a spodumene concentrate (greater than 6 per cent lithium oxide) to be sold to Transamine.
Transamine will have the right to 150,000 tonnes of concentrate produced from the phase 1 processing
Commercial terms shall be agreed in line with the international market terms for spodumene
concentrate with greater than 6 per cent lithium oxide.
Transamine, a Swiss-based offtaker, is a full-service company providing worldwide raw material sourcing,
marketing, finance and investment. Transamine is actively trading other mineral concentrates in Zimbabwe
and has lithium offtake agreements elsewhere in the world. John McTaggart, chairman of the Kamativi
Tailings Company, commented: "They are a strong partner for the project with their extensive experience in
supporting African mining operations and their long history of minerals marketing internationally. We look
forward to developing a long-lasting and beneficial relationship with Transamine over the years to come."
The project team is looking forward to finalizing all documentation to continue the rapid advancement of the
project as well as the construction of the phase 1 processing plant to bring the project into production as quickly as
Alain Moreau, a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has
approved the scientific and technical disclosure in this press release.
We seek Safe Harbor.
© 2019 Canjex Publishing Ltd. All rights reserved.