African Energy Metals has entered into an agreement with Black Hole Aurum Limited (BHA) a private Tanzanian company, to jointly pursue and acquire controlling interests in coal projects in Tanzania.
BHA is controlled by experienced businessmen having preexisting relationships with multiple coal companies with projects and delineated resources in Tanzania. BHA and the Company are currently negotiating agreements on the first two targets and have signed an exclusive MOU on one of the projects.
Stephen Barley, Executive Chairman stated: “African Energy Metals’ relationships in Africa extend beyond the DRC and into many neighboring countries. With the renewed interest in coal generated power in Europe, we were approached by BHA to participate with them in this exciting opportunity.
The focus will be on projects that can sustain or increase coal production for export in the near term. The Company will continue with the current lithium, tin, tantalum, and rare earth projects in the DRC.”
African Energy Metals intends to complete a non-brokered private placement (the “Financing”) of 10,000,000 units (each a “Unit”) at a price of CAD $0.05 per Unit for aggregate proceeds of CAD $500,000. Each unit will consist of one common share of the Company (a “Share”) and one-half of one common share purchase warrant (with each whole warrant being a “Warrant”).
Each Warrant will entitle the holder thereof to acquire one additional common share in the capital of the Company (a “Warrant Share”) at a price of $0.10 per Warrant Share at any time prior to 5:00 p.m. (Vancouver time) on the date (the “Expiry Date”) that is 24 months following the Closing Date.
The proceeds from the Financing will be used for exploration expenses for sampling programs on the two highly prospective Manono, DRC lithium, tin, tantalum, rare earth projects; for due diligence relating to coal projects in Tanzania, and for general working capital purposes.
The securities issued pursuant to the Financing will be subject to a hold period under applicable securities laws, which will expire four months plus one day from the date of closing of the Financing. Closing of the Financing is subject to receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.