Gold explorer Stratex International (LON:STI) will take part in a new financing of Canada-listed Tembo Gold (CSV:TEM) after a previous agreement failed to meet the C$7mln minimum subscription requirement.
As a result, Stratex and its partners have agreed to fund a new private placement to raise C$8.25mln gross for Tembo.
Stratex will now subscribe for 17.5mln shares at C10c at a total cost of C$1.75mln and receive an equal number of warrants.
On receipt of the shares Stratex will have a 13.2% stake in Tembo, which could rise to 23.4% if it exercises the warrants, which are priced at 12c.
Tembo will use the money for exploration on its package of 100 square kilometre of licences and applications in Tanzania, adjacent to Barrick's Bulyanhulu Mine.
Christopher Hall, Stratex’s chairman, said: "Unfortunately, the previous agreement was terminated due to the minimum subscription requirement of C$7.0 mln not being met by the due date.
“The Investor Group, consisting of Stratex, the New Africa Mining Fund II and Concept Capital, were willing to make up this shortfall, provided the terms were improved.
“Consequently, Stratex will now be subscribing for 17.5mln shares at the reduced price of C$0.10 per share, resulting in an initial holding which is increased to 13.2%.
“An indirect advantage of the delay and renegotiation is that regulatory approval for aspects of the transaction have been received and the need for Subscription Receipts, which would convert into shares, has fallen away.”