TORONTO, ONTARIO - TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo" or the "Company") is pleased to announce that it has reached agreement with IFC, a member of the World Bank Group, whereby IFC will enter into a private placement equity subscription agreement (the "Financing") with the Company.
The non-brokered private placement of 1,818,181 units of the Company (the "Units") will consist of one common share priced at C$1.10 and one 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 pricing of the Unit's common share and warrant is consistent with the TSX Venture Exchange private placement policy guidelines. The Financing is scheduled to close on or before September 14, 2012, and is subject to TSX Venture Exchange approval
The purpose of the proposed investment is to assist in the financing of the Company's on-going exploration of its Botswana diamond and metals licenses in northwest Botswana.
Tsodilo's ongoing association with IFC represents numerous significant positives to the Company, most notably:
- IFC's track record of providing on-going financial support to its clients throughout the project cycle;
- An association with a global financial organization that promotes the highest of operating, environment, social, and health standards and;
- The recognition of the potential of the Company's project to become viable deposits thereby providing economic stimulus to under-developed regions.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital and providing advisory and risk mitigation services to businesses and governments. IFC's new investments totaled nearly $19 billion in fiscal 2011. For more information on IFC, visit
www.ifc.org
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 km² under Precious Stone - diamond licenses). The Gcwihaba project area: 3,728 km² under Precious Stone - diamond licenses; 14,914 km² Metal (base, precious, platinum group, and rare earth) licenses; and, 6,925 km² 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, which may cause actual results or performance to differ materially from those currently anticipated in such statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
James M. Bruchs
Chairman and Chief Executive Officer
JBruchs@TsodiloResources.com
Dr. Mike de Wit
President and Chief Operating Officer
MdeWit@TsodiloResources.com
Head Office
Telephone +1 416 572 2033
Facsimile + 1 416 987 4369
Website
http://www.TsodiloResources.com
