Stratex International Plc Invests in Tembo Gold Corporation

Stratex International Plc, a leading exploration and development company focused on gold and base metals in Turkey, East Africa, and West Africa, has made a significant investment in Tembo Gold Corporation. The strategic financing agreement is aimed at continuing the exploration and evaluation of Tembo's highly prospective gold property in Tanzania.

As part of the agreement, Stratex will subscribe for an aggregate of 11,046,667 subscription receipts (SRs) of Tembo priced at $0.15 per SR, for a total consideration of C$1.657 million. Upon receipt of applicable clearance from the TSX Venture Exchange, Stratex will hold 11,046,667 common shares in Tembo and an equal number of warrants.

The funds invested by Stratex will be focused on resource definition over the next two field seasons at the Tembo gold property, which covers a package of approximately 100 square kilometers of highly prospective licenses and applications in Tanzania. The property is adjacent to Barrick's Bulyanhulu Mine, one of the largest gold mines in the region.

Commenting on the proposed investment, Stratex Chairman Christopher Hall said, 'Obtaining shareholder consent for the strategic investment in Tembo by ourselves, the New Africa Mining Fund II and Concept Capital, and signing the Subscription Agreement, represent significant steps towards closing the transaction and a vote of confidence in our approach.'

The subscription agreement marks Stratex's contribution to a total C$8.657 million placement with co-investors New Africa Mining Fund II and Concept Capital Management Ltd. Following conversion of the SRs and assuming completion of the maximum placement, Stratex will own up to 11,046,667 common shares of Tembo, representing approximately 10.3% of the outstanding common shares on a non-diluted basis.

Stratex's investment in Tembo Gold Corporation is a significant step forward for both companies, and demonstrates their commitment to exploring and evaluating the vast gold potential of the Lake Victoria Gold Belt in Tanzania. With this strategic financing agreement, Stratex is well-positioned to make further progress in its exploration and development activities in East Africa.

Tembo gold corporation