Tectonic Gold Plc - Sale of South African Interests and strategic update

Tectonic Gold Plc - Sale of South African Interests and strategic update

PR Newswire

LONDON, United Kingdom, August 07

7 August 2024

TECTONIC GOLD PLC

("Tectonic" or the "Company")

Sale of South African Interests and strategic update

Tectonic Gold plc (TDIM: TTAU), is pleased to announce completion of the divestment of its interest in the South African diamond and heavy minerals projects to joint venture partner, AIM listed Kazera Global PLC (AIM: KZG) ("Kazera") and we also provide a strategic update.

Highlights:

1. Sale of 10% residual holdings in Deep Blue Minerals Pty Ltd and Whale Head Minerals Pty Ltd along with the Black Economic Empowerment loan interest for a total consideration of comprising cash of $150K (£117,000) and 27,110,947 Kazera shares
2. Australian copper/gold JV progressing with Amerod Resources (ASX:WEC White Energy Corporation Ltd) preparing to drill copper targets south of Specimen Hill following positive exploration results
3. Tectonic completing diligence on Western Australian gold acquisition opportunity

Tectonic has determined to focus strategically on Australian gold and has divested its remaining interest in the South African diamond and mineral sands JV with Kazera. Tectonic will retain an indirect interest in the South African projects through an equity holding in Kazera. The consideration shares will be subject to a lock in for a period of six months and Kazera expects to have initial production underway within this time. The equity consideration of this transaction is subject to shareholder approval, and the Kazera directors and insiders have provided undertakings to vote in favour of the transaction and on this basis we expect it to be approved.

In our Queensland joint venture, White Energy has completed successful exploration work over the first half of the year. Copper targets to the south of the original Specimen Hill gold discovery at Southern Copper, Mt Fane, Bullseye and Mt Walturn have all returned positive results and a drilling program to further delineate these mineralised zones is being prepared.

A number of highly prospective Australia gold projects have been evaluated by the team, which has resulted in negotiations to acquire a portfolio of advanced assets in Western Australia. The project consists of shallow lying extensions to historic open pit mines and it also holds a substantial tailings stockpile which testing has shown is suitable for reprocessing. Gold recovery technology has advanced since these mines were operational and gold left behind in the tailings in the original process can be captured through simple chemical leaching in concrete vats. The old mines are in a well-known goldfield in Western Australia and there is substantial production from neighbouring mines. The operating mines are natural buyers for additional resources that can supplement existing mine production.

Tectonic still holds the Mt Cassidy intrusive related gold system project in Queensland. Mt Cassidy is along strike from the famous Mt Morgan copper/gold mine and has had no modern drill testing following its rediscovery by Tecrtonic. The Queensland Government has waived license fees on this project and it is being held for drill testing or farming out in a similar deal to Specimen Hill.

Mr. Brett Boynton, Managing Director - Tectonic Gold Plc

"We have been encouraged with the results White Energy is showing and we are excited to once again be looking at new gold opportunities in Australia. With this strategic focus it makes sense to step back from project level interest in the various South African assets and put all our energy into gold once again.

The strict guidelines for our Western Australian evaluations have been shallow deposits with potential for short term cash flow and proximity to existing producers who are looking for additional feed for their operations. This enables Tectonic to focus on our core strength of resource identification and delineation with ready local partners hungry to take projects into production and cash flow. This is a cost-effective way to build a portfolio of recurring revenues with royalties and profit sharing arrangements without having to build and operate mines.

We are pleased to see Kazera committing further resources to bringing Deep Blue back into production and having Whale Head ready to commission as soon as final permitting is in hand. We are hoping to see these two projects bring economic upliftment to the region in the short term and create real opportunity for the Black Economic Empowerment Partners we introduced to the project."

The Directors of the Company accept responsibility for the contents of this announcement.

Investors can sign up to Tectonic's mailing list at the following link:

http://www.tectonicgold.com/contact

Follow us on Twitter: @Tectonic_Gold

For further information, please contact:

Tectonic Gold plc Brett Boynton Sam Quinn www.tectonicgold.com @tectonic_gold	[phone]
Aquis Stock Exchange Corporate Adviser and Broker VSA Capital Limited Andrew Raca - Corporate Finance Andrew Monk - Corporate Broking		[phone]??? 5004???

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