Tectonic Gold Plc Mining Permit Granted

 
TIDMTTAU 
 
31 August 2022 
 
                               TECTONIC GOLD PLC 
 
                      ("Tectonic Gold" or the "Company") 
 
                             MINING PERMIT GRANTED 
 
Tectonic Gold plc (TDIM: TTAU), is pleased to announce that Whale Head Minerals 
Pty Ltd ("Whale Head"), the Company's Heavy Mineral Sands ("HMS") Joint Venture 
("JV") in South Africa, with Kazera Global Investments Plc ("Kazera") (AIM: 
KZG), has been awarded a Mining Permit . 
 
Highlights: 
 
  * Mining Permit awarded to Whale Head Minerals Pty Ltd 
  * Tectonic holds a 40% economic interest in Whale Head 
      + 10% non-diluting equity interest 
      + 30% economic interest via Black Economic Empowerment ("BEE") partner 
        earn out 
  * £150 million Net Present Value from independent expert report commissioned 
    by JV partner 
  * 3.11 million tons JORC Indicated Mineral Resource at a grade of 61.2% HMS 
  * Additional Prospecting Right neighbouring permit, with area over 30 times 
    larger, also under application 
 
Mr. Brett Boynton, Managing Director - Tectonic Gold Plc 
 
"We are very pleased to have the Mining Permit finalised and are looking 
forward to seeing this project brought into production. We worked closely with 
Kazera and our local BEE partners to achieve this outcome and it is a great 
example of local and international partners creating opportunity in South 
Africa in the mining industry. This project complements our existing diamond 
mining joint venture on the South African Government diamond mining site and 
offers the opportunity to grow into a multi-generational strategic minerals 
project for the region. 
 
Tectonic retains a 10% non-diluting equity interest from the previous sale of 
60% of Whale Head to Kazera. In addition, Tectonic has sold 30% to a consortium 
of local BEE partners, with this sale to be funded over time from a share of 
the profits. The BEE syndicate includes entities controlled by Dr Gil Mahlati, 
a well-known South African business leader who has been appointed Chairman of 
Whale Head and Dr Dempsey Naidoo, also a high profile South African 
businessman. Dr Naidoo had a successful career with Anglo American, leading its 
Mineral Sands business before moving on to build one of the most successful 
engineering groups in Africa. He has also been appointed to the Board of Whale 
Head. These partners bring significant profile to what we expect to become a 
major project for the regional economy. 
 
The initial £150 million valuation of the project does not include the 
neighbouring beach area which is under permit application. This much larger 
area provides upside to the project once the Whale Head beach zone is brought 
into production. 
 
Mining of mineral sands in this area has historically been precluded by diamond 
mining activity and the necessity for strict security protocols around those 
operations. Despite the site being a well-established mining operation with 
almost 100 years of diamond mining history, the mineral sands have not been 
exploited. Whale Head will now mine high grade HMS zones with simultaneous 
diamond extraction in a first of its kind operation for the site. 
 
The alluvial sands containing the diamonds and HMS are mined using dredging and 
digging equipment and processed using water and gravity separation. It is an 
environmentally friendly operation with no explosives or processing chemicals. 
The project will offer a range of job creation opportunities on site and in 
support. 
 
It is anticipated that Whale Head will start operations and sell a concentrate 
until on site processing facilities have been built. This will likely be in 
partnership with a major international mineral sands production and sales 
group. 
 
This is a great outcome for the Alexander Bay community as we will now see new 
economic development and it is a great outcome for our partners and 
shareholders." 
 
For further information, please contact: 
 
Tectonic Gold plc                                               +61 2 9241 7665 
Brett Boynton 
Sam Quinn 
www.tectonicgold.com 
@tectonic_gold 
 
Aquis Stock Exchange Corporate Adviser and 
Broker                                                         +44 20 3005 5004 
VSA Capital Limited 
Andrew Raca, Pascal Wiese - Corporate 
Finance 
Andrew Monk - Corporate Broking 
 
 
                                     Ends 
 
 
 
END

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August 31, 2022 02:00 ET (06:00 GMT)

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