Tembo Gold takes next step in transformation to gold producer

As announced in August of this year, Canada’s Tembo Gold (WKN A2P9RS / TSXV TEM) is currently acquiring the Imwelo and Dora gold projects in Tanzania, which together have historical resources of more than 800,000 ounces of the precious metal. The aim is to build the company into a medium-sized gold producer and gold project developer. In view of this, it is understandable that Tembo wants to adapt not only its strategy but also its corporate image to these developments.

This also means that the company, which is receiving a total of CAD 11.52 million in fresh capital through an equity financing with Tanzanian Taifa Group, will be renamed Lake Victoria Gold. This is fitting, as the company is active in the Lake Victoria greenstone belt, where it has set itself the goal of consolidation as well as growth and because it is acquiring the assets from a company of the same name.

New management for a new strategy

In view of the company’s new direction, Tembo is also adopting a new management team. Founding director Marc Cernovitch will take on the role of CEO, while CFO Simon Benstead will also assume the position of Executive Chairman. As COO, the company has appointed Seth Dickinson, who has over 30 years of experience in mining, including mine management, contract mining, feasibility studies and project management. Mr. Dickinson has been project manager for the construction of several mines.

Tembo’s former CEO David Scott will work closely with the new management team in his new role as Managing Director Tanzania and geological advisor to Tembo / Victoria Lake. His focus will be on identifying and evaluating new, potentially value-enhancing opportunities for the company.

Last but not least, Richard Reynolds will join the Tembo / Victoria Lake Board of Directors upon completion of the Taifa transaction, which is expected for the first quarter of 2024. Mr. Reynolds is CEO of Taifa Mining and Civils, the largest mining company in Tanzania with clients such as Barrick Gold and AngloGold Ashanti. He has a broad base of experience in international trade and business development gained from various projects and companies mainly in East Africa and the United Arab Emirates. We believe that a man of this caliber – and certainly relationships – will be a valuable asset to the company going forward.

Imwelo takeover makes progress

With respect to the Imwelo acquisition, Tembo has already received both shareholder approval and the first tranche of financing with the Taifa Group at a price of CAD 0.22 per share. The technical report on the project has also been received and been submitted to the TSX Venture Exchange for final approval. The company also announced that the approval process in Tanzania is progressing well.

Conclusion: The acquisition of the production-ready Imwelo project with the prospect of becoming a gold producer with significant exploration potential is literally transformative! Tembo is thus rising from a company with a single, albeit very promising, exploration project to a company with a wide range of opportunities, for example in the consolidation of stranded gold assets in Tanzania. Especially thanks to the financing with the Taifa Group and its owner, Tanzanian tycoon Rostam Aziz, of course. When the transactions with Taifa and the takeover of Imwelo are finally completed, the company could in our opinion therefore advance to a whole new level, despite all risks.