Friday , September 18 2020
Home / Business / Tanzania Gold gives updates on its financials

Tanzania Gold gives updates on its financials

Tanzanian Gold has strengthened its balance sheet by converting US$8.4 million of outstanding gold loans and convertible loans into common shares.

The Company has also signed a flexible financing agreement for up to US$14 million of unsecured convertible debentures with institutional investors Riverfort Global Opportunities PLC. and YA II PN, Ltd.

The proceeds from the Financing will be utilized for a significant expansion of the Buckreef Project oxide mining and processing operation, the advancement of a Feasibility Study for the larger sulphide mining complex, the continuation of multiple drilling programs, and general corporate purposes.

Tanzanian Gold has developed a scope of the project to expand the oxide processing plant to the range of 40 tph as the basis for regulatory approval. Details of the plant expansion will be announced in the immediate future.

The Financing enables Tanzanian Gold to continue building shareholder value as the Company enters substantial new phases in the process of building a substantial mine at the Buckreef Project.

The Financing will be structured in multiple tranches: (i) US$7.0 million will be advanced between close and the effectiveness of a registration statement with the Securities and Exchange Commission (SEC), and (ii) US$7.0 million will be advanced overtime at the Company’s election upon reaching certain milestones.

James E. Sinclair, Executive Chairman of Tanzanian Gold, comments:

“The past 18 months of work from a talented team at Buckreef and our entire organization represent an incredible period of progress and value creation for our Company.

“We have dramatically grown our resource base at very low cost, increased the scale and scope of what we now feel will be the next major mine in Tanzania, and have begun to unlock the tremendous blue-sky potential that exists with our continuing exploration and development programs.

“Critically, we have now become a gold producer. The Financing announced today will ensure the rapid expansion of production, and by the end of the term of this agreement, we expect to reach our goal of becoming cash-flow positive.”

Check Also

WearCheck moves to Westville

Condition monitoring specialists, WearCheck, recently relocated their head office and main laboratory from Pinetown to …