Tsodilo Closes Private Placement Financing
Agreement With IFC
Tsodilo Resources Limited (TSX Venture
Exchange: TSD) ("Tsodilo" or the
"Company") is pleased to announce that it has closed the Private
Placement Financing Agreement (the "Financing') previously announced on
August 31, 2012, for gross proceeds to the Company of $2,000,000.
The Financing is for 1,818,181 units of the Company (the "Units").
Each Unit is comprised of one common share priced at C$1.10 and one common
share purchase warrant per unit, each such warrant entitling the holder to
purchase one common share of the Company for a period until the close of
business on June 29, 2015 at USD$1.21.
The common shares to be issued as a result of the Financing will have a
statutory four month hold period expiring on January 8, 2013.
No commissions have been or will be paid in connection with this Financing.
The proceeds of the Financing will be used by Tsodilo
for advancement of the Xaudum iron ore and metals
project in Botswana, and for general corporate working capital.
IFC, a member of the World Bank Group, is the sole placee
in this Financing and, as a result, will own upon the closing thereof 4,520,883
common shares (representing 16.11% of the issued and outstanding share capital
of the Company and up to 30.27% on a partially diluted basis, assuming the
exercise of all of IFC's warrants granted to date [2,802,802 priced at C$2.17,
expiring June 29, 2015, and 1,818,181 priced at USD$1.21, also expiring on June
29, 2015]).
James M. Bruchs (Chairman) said "IFC is our
"Partner of Choice", their participation, professionalism, guidance
and expertise combined with the economic, political and social stability
afforded by the government of Botswana together with the assistance and support
provided by the Ministry of Minerals, Energy and Water Resources and the
Department of Geological Survey, create a winning atmosphere for mineral
exploration and development."
About Tsodilo Resources Limited
Tsodilo Resources Limited is an international diamond
and metals exploration company engaged in the search for economic kimberlites and metal deposits at its Newdico
(Pty) Limited ("Newdico") and Gcwihaba Resources (Pty) Limited ("Gcwihaba")
projects in northwest Botswana. The Company has a 98% stake in Newdico (3,949 km� under Precious Stone - diamond
licenses). The Gcwihaba project area: 3,728 km� under
Precious Stone - diamond licenses; 14,914 km� Metal (base, precious, platinum
group, and rare earth) licenses; and, 6,925 km� under Radioactive Minerals
licenses is 100% held by the Company. Tsodilo manages
the exploration of both the Newdico and Gcwihaba license areas. The Company has offices in Toronto,
Canada and Gaborone and Maun, Botswana. Please visit the Company's website, www.TsodiloResources.com for additional information and
background on our projects.