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

Jan 9, 2019

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’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 funding will be provided as a lump sum payment on completion of the relevant condition’s precedent by each of Transamine and KTC.
The tenor of the facility is in line 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 and working capital.
KTC will produce a +6% Li2O Spodumene concentrate 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 +6% Li2O Spodumene concentrate.

Transamine, a Swiss based off-taker, is a full-service company providing worldwide raw material sourcing, marketing, finance and investment. Transamine are actively trading other mineral concentrates in Zimbabwe and have lithium offtake agreements elsewhere in the world. John McTaggart, the Chairman of the Kamativi Tailings Company, has said “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”. Further information on Transamine, can be found on their website at http://www.transaminetrading.com/

The Project team is looking forward to finalising all documentation to continue the rapid advancement of the Project and 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 NI 43-101 Standards of Disclosure for Mineral Projects has approved the scientific and technical disclosure in this press release.

We seek Safe Harbor.

http://chimatagoldcorp.com/news/