TGZ Renew's Axmin Inc. Land Package In Senegal. On Page 24 of TGZ.T Annual Information.
Regional Land Package (RLP)
On March 2, 2018, Teranga’s wholly-owned subsidiary executed two (2) mining conventions with the Ministry of Mines
which will govern the terms of two (2) new exploration permits which are expected to be issued in due course. These
new exploration permits, Bransan and Sounkounkou, will comprise the RLP and will have an initial term of four (4)
years.
As background, over the course of 2016 and 2017, the prior 8 permits that comprised the RLP expired, and in advance
of that the Company worked in collaboration with the Senegalese Ministry of Mines to reduce our overall exploration
land package while at the same time filing applications for two new permits that would comprise approximately 2/3 of
the previous RLP that covered nearly 1,000km2.
All exploration permits are granted by ministerial decree and are subject to a mining convention signed between SMC
and the government of Senegal. The gold exploration permits are held in a combination of full SMC ownership and
earn-in joint ventures where SMC is the funding and managing party as outlined in below.
Given the Sabodala Mining Convention signed with the government of Senegal on April 7, 2015 and its provisions
extending to SMC exploration permits, it is anticipated that permits that move into production will be merged into this
mining convention and be bound by its revised fiscal terms regarding royalty rate and tax exoneration periods.
Summary of Joint-Venture Agreements in Place over SMC's Exploration Permits
There are currently two joint venture agreements over SMC’s exploration permits:
• Axmin Joint Venture – covers the areas under the former Sounkounkou and Heremakono permits to the extent
they are included within portions of the new Sounkounkou permit.
• Bransan Agreement – cover the areas under the former Bransan permit to the extent they are included within the
new Bransan permit. Although the new Bransan permit will be fully held by SMC, there is a 30% ownership right
assigned to a Senegalese company, Senegal Nominees Limited.
