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Chimata Gold Corp (2)
Symbol C : CAT
Shares Issued 50,422,310
Close 2019-01-09 C$ 0.075
Recent Sedar Documents

Chimata signs $9.5-million (U.S.) financing term sheet

2019-01-09 10:13 ET - News Release

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 plant.
  • 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 possible.

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.

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