BlackGold Natural Resources has entered into a non-binding term sheet for the proposed acquisition of the entire issued and paid-up share capital of Tengri Coal and Energy (TEC) from MGL Development (MGL) for $1 billion via a reverse take-over.

TEC owns the entire issued and paid-up share capital of Tengri Petrochemicals (TPL), which holds mining licences issued to mine coal deposits in Bayan soum, Tuv province, Mongolia. In addition, TPL’s wholly-owned subsidiary Tsaidam Energy holds licences for the construction of power plants and energy facilities in Mongolia. 

The purchase price of $1 billion shall be adjusted based on an independent valuation of TEC and assets held by the group (including its power plant licence, offtake agreements and indicated and inferred mineral resources) to be commissioned by BlackGold.

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