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It's four months on the main market, but it's six months on AIM.
https://docs.londonstockexchange.com/sites/default/files/documents/AIM%20Rules%20for%20Companies%20%2801012021%29_1.pdf
MANAGING DIRECTOR’S STATEMENT
Dear Shareholder,
During the half year to December 2023, the Company worked closely with interested parties to secure a farm-out agreement on the Specimen Hill project tenements and the team also spent significant time on research and in-country evaluation of opportunities in the Ashanti goldfields in Ghana.
We completed a farm-out agreement, as previously announced, with ASX listed White Energy Pty Ltd. White Energy is the development vehicle of a very successful resources investment and development team in Australia. They have taken over the Specimen Hill project area with a focus on the copper mineralisation rediscovered by Tectonic over the last 5 years. White Energy is investing in the transition to renewables and the looming shortage of copper to enable the move to a lower carbon economy with electric vehicles.
The terms of the farm-out agreement provide for a staged acquisition of the project by White Energy, a $2 million payment to Tectonic and Tectonic holding a 3% royalty on any future mineral sales from the project area.
Our investment alongside London listed Kazera Global Investments Plc (“Kazera”) (LSE:KZG) in the Heavy Mineral Sands and Diamond projects in South Africa waiting on approval from the South African National Nuclear Regulator ("NNR") for final permitting. Kazera has advised that the decision is expected by the end of April 2024 with operations to commence immediately thereafter.
Independent studies conducted for Kazera valued this project at £150 million. Tectonic holds a non-diluting 10% interest in the project and a further 30% economic interest via a sale and loan agreement with a Black Economic Empowerment (BEE) consortium to bring them in as partners on the project.
Tectonic is in ongoing discussions with gold mining project owners in Ghana. We have identified an attractive acquisition target and approached the parties controlling the mine to buy it. We have also identified potential investors in Ghana who have an appetite to fund the acquisition in a UK listed company and provide working capital to bring the mine into profitable production.
The team continues to evaluate other opportunities that are being presented and securing a suitable transaction for the Company will be the focus for the remainder of the year.
We received approval from the Australian Federal Government earlier this month for Signature Gold’s 2023 project work to be included in the Research and Development funding program and we are working with our accountants to complete the submission for our cash refund. Initial estimates are that it will be circa A$150,000.
https://www.londonstockexchange.com/news-article/market-news/interims-for-period-ended-31-december-2023/16404709
Tectonic Gold plc (TDIM: TTAU) has experienced a delay in filing our group consolidated interim financial statements for the period ending 31 December 2023. This delay is attributed to an unforeseen disruption caused by the relocation of our Australian office, which temporarily interrupted access to our systems over the past week.
We are pleased to announce that the office move has now been successfully completed. Our team is diligently working to finalize the consolidation of accounts and we anticipate completion early next week, following the Easter break.
In addition to the interim financials, we will be providing a comprehensive corporate update. This will include progress updates on the Specimen Hill project farm out, details regarding the submission and approval of the 2023 Australian Federal Government R&D refund claim, and insights into our ongoing joint venture activities.
https://www.londonstockexchange.com/news-article/market-news/delay-in-publication-of-interims/16402236
Https://666e6ee8-31af-4e4f-9a0d-6a192f414444.usrfiles.com/ugd/666e6e_3213d104899440acba44450b4c013615.pdf
Mr. Brett Boynton, Managing Director – Tectonic Gold Plc
“We are very pleased to be partnering with the exceptional team at White Energy. They share
Tectonic’s deep tech approach and are the perfect partner to take our Specimen Hill
discoveries into resource definition.
The royalty enables our shareholders to retain meaningful the long term upside in the
discoveries Tectonic has made at Specimen Hill while White Energy steps in to take over
operations and assume ongoing financial responsibility.
It has been a long journey since we first acquired the initial ground at Specimen Hill and this
is a good result and proof our original exploration thesis had merit. We still hold the Mt Cassidy
project area to the north of Specimen Hill which the Queensland Government has waived
license fees on so we have time to consider development options.
I would like to congratulate the team for taking this project from concept to discovery and
successful transaction. They are now freed up to focus on other opportunities which we have
been working up over the last six months and look forward to sharing in due course.”
Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02770380-2A1503785
Accounts are due this month. Hopefully we will hear more about the Specimen Hill farm-out to Fiddlers Creek/White Energy. There has been no announcement on the farm-out from White Energy, but they have just raised 2.9m AUD before costs.
It would be nice to hear from Brett, it's been a while.
Https://www.thisismoney.co.uk/money/investing/article-12552239/MIDAS-SHARE-TIPS-UPDATE-Lithium-powers-Trident-Royalties.html?ico=mol_desktop_moneymarkets-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Fmarkets%2Findex.html&_ga=2.157289596.758025479.1695542255-1504148608.1637757497&_gl=1*tlnvmd*_ga*MTUwNDE0ODYwOC4xNjM3NzU3NDk3*_ga_XE0XLFFF16*MTY5NTU0MjI1Mi40NC4xLjE2OTU1NDIyOTUuMC4wLjA
Mr. Brett Boynton, Managing Director – Tectonic Gold Plc
“The team is really encouraged by the recognition for what we have achieved in our research in Australia over the last five years. The Fiddlers Creek endorsement is validation of Tectonics’ courage to pioneer new ideas in exploration and winning the role with Optimus is a Company changing opportunity to take all of that experience into one of the premier gold belts in the world.
Tectonic is still deeply entrenched in research in Australia and is now exporting that expertise to Ghana, with a strong in-country partner who has a genuine desire, and the means, to see a new major gold play created. Ghana, like Australia, has a long and storied gold mining history. Tectonic is bringing expertise directly from the crucible of research and development in Australia, to be a part of the next generation of Ashanti mining stories.
Tectonic is actively reviewing opportunities where we can build a portfolio of holdings in high quality global gold projects.”
Rare earths in heavy mineral sands joint venture
Tectonic holds a 40% economic interest in Whale Head Pty Ltd, a heavy mineral sands mining (“HMS”) project being developed by joint venture partner, AIM quoted Kazera Global Plc (“Kazera”). In July, Kazera announced elevated radioactivity readings in ores beneficiated from alluvial mining of HMS in the Walviskop project in South Africa and as a result the need to engage South Africa’s National Nuclear Regulator. This is worth understanding in more technical detail as the source of the radiation is weakly radioactive thorium, a Rare Earth Element (REE) found in monazite.
The HMS ores at Walviskop include economic concentrations of rutile, zircon, and monazite. Rutile and zircon are widely used with a range of industrial applications. Monazites are less well known, but are rare earth minerals typically comprising thorium, lanthanum and cerium. Lanthanum and its neighbour on the periodic table, cerium, are used in high end lighting applications, think flat screen TVs and iPhones. Thorium is used in heat resistant ceramics and platinum catalytic converters in diesel engines on cars, trucks, ships and trains. The elevated radiation readings in the Kazera testing should be understood as evidence that the ores contain valuable monazites. With China’s recent restrictions on the export of certain REEs, this is a positive outcome for Tectonic.
Ashanti Gold portfolio development lead
Tectonic has been working closely with the principals of Optimus Resources Ltd (“Optimus”) over the last six months reviewing a 1,500km2 tenement portfolio surrounding the lucrative Obuasi and Tarkwa operations within the Ashanti Gold belt in Ghana. Independently verified historic exploration on this portfolio reports immediate resources of over 1 million ounces of gold.
The portfolio has been privately held for over twenty years by a leading Ghanian family office. Their interests span media, insurance, packaging and real estate and the family wishes to now commercialise the gold portfolio, building a vertically integrated gold mining business. Their objective is to have it listed on a major international stock exchange. Tectonic has been engaged to provide technical expertise and a corporate development strategy for the portfolio.
The Company has begun to evaluate, rank and prioritise assets within the portfolio and construct a project development pipeline, commercialisation strategy, identify suitable merger and acquisition opportunities and define a pathway to listing the group on a major exchange.
This program is being fully funded by the owners.
This is an exceptional opportunity for Tectonic to gain access to a tenement package of this scale in one of the most productive geological settings in the world. The Ashanti Gold Belt has been a major source of global gold production for over a century and hosts a number of the largest international mining companies. Tectonics’ key management has experience on the ground in Ghana and companies affiliated with Tectonics’ founding team are already operating in country, servicing these major gold mines. Tectonic is bringing its deep technical research capability, developed with support from the Australian Federal Government and leading Australian exploration and mining research institutions, to contribute to the discovery and development of the next generation of Ghanaian gold mines.
Specimen Hill project farm-out
In August Tectonic finalised terms with Fiddlers Creek Mining Company Pty Ltd (Fiddlers Creek) on an option for Fiddlers Creek to farm-in to a majority position in the Specimen Hill project. Fiddlers Creek is the exploration division of ASX listed White Energy Limited, a corporate vehicle being developed by a highly successful Queensland resources investment group. The terms are as follows:
Stage 1 – an option to acquire 51% at the project level for a cash spend of AU$1 million within 3 years
Stage 2 – an option to acquire a further 25% (76% in total) by spending a further AU$2 million
Stage 3 - Tectonic has the choice of co-funding further development or selling a further 15% to Fiddlers Creek for AU$2 million in cash
The remaining interest may then be converted into a non-diluting 3% royalty.
White Energy has a similar technology approach to Tectonic and has a proprietary ionic geochemistry technique that they will be deploying on Specimen Hill in the second half of August. This advanced testing is highly effective in identifying copper targets at depth and will complement the extensive work Tectonic has already completed on testing the gold in the Specimen Hill system. This will enable a comprehensive understanding of the copper/gold prospectivity of Specimen Hill.
This arrangement brings advanced technology and a successful Queensland based team into the project to complement the work done to date. In addition, it enables Tectonic to retain a significant economic exposure to Specimen Hill without incurring development cost as the project is further de-risked.
R&D update
In July Tectonic received a further $157,000 from the Australian Government under its research and development funding program. Over $3 million has been received from this program to date which has substantially funded the development of exploration technology improving the efficiency of gold resource identification and delineation.
The technology expertise and exploration methodology created through years of rigorous in-field testing at Specimen Hill has generated two significant opportunities.
The data package generated over multiple seasons of field testing at Specimen Hill has attracted a farm-in partner to undertake the continued development of the project. This is discussed in more detail below.
The advanced technical expertise developed over the program attracted the interest of an international gold investor and has resulted in Tectonic being appointed to lead the commercialisation of a large privately held gold portfolio in the world class Ashanti Gold Belt in Ghana. Details of this are provided below.
Expenses in Australia have been significantly reduced and all foreseeable costs will be covered by cash in hand and expected future funding from the Australian Government.
YEAR END CORPORATE UPDATE
Tectonic Gold plc (TDIM: TTAU, is pleased to provide an update on key corporate and operational developments including funding from the Australian Government, partnering with a leading Australian mining group on the ongoing development of the Specimen Hill gold project and an engagement to lead commercialisation of a major gold portfolio in Ghana.
Highlights:
Receipt of R&D funds from Australian Government
Farm-out of Specimen Hill copper/gold project
Commercialisation of privately held gold portfolio in the Ashanti Gold Belt
Rare earths outcome in Heavy Mineral Sands(“HMS”) joint venture
Tectonics’ strategy is to build participation in projects through a transfer of its IP, technology and expertise without having to internally fund project development. Farming out Specimen Hill at the completion of the research program, coupled with an expert advisory engagement to earn an interest in the Ghanaian portfolio is the most efficient way to crystalise value without having to raise additional capital. We are constantly evaluating additional opportunities to build project level interests and over time, a diversified revenue from those interests.
..
If a permit is required, the application could take between three and nine months whereupon the Company will immediately commence production and sales of the higher value HMS products.
The Company is using this time to undertake more sampling to confirm previous results and continue construction and area preparation for both the plants in Walviskop Bay. This includes the erection of a Trommel screening plant which is under construction by a third party in South Africa and remains on track for completion by the end of September 2023.
Further, the Company is in the process of creating drying, bagging, and loading facilities within a secure area recently supplied to the Company by Alexkor RMC JV. Alexkor RMC JV recognises the value of the project in terms of opportunities for the local community and the Company's increasingly positive and collaborative relationship with Alexkor RMC JV has also resulted in it being provid ed administration buildings, entrance /exit facilit ies and a sheltered and secure workshop facility for the repair, maintenance and storage of the Company's plant and machinery.
The provision of these secure sites and facilities will benefit both the Company's HMS operation and diamond project and should result in significant cost savings going forward.