Tanzania Gold Corporation (TGC) is in the process of developing a significant gold mine at the Buckreef project, in Tanzania.
The NYSE- and TSX-listed company has drawn down an initial $4-million in funding from a $14-million unsecured convertible debenture it has with institutional investors Riverfort Global Opportunities and a hedge fund of Yorkville Advisors Global called YA II PN.
The drawn funds are being used for expanding the company’s Buckreef oxide mining and processing operation, the advancement of a feasibility study for the larger sulphide mining complex, the continuation of drilling programmes and general corporate purposes.
The company started production at an oxide plant in June and is now moving ahead to expand this plant’s processing capacity.
Meanwhile an ongoing drill programme has more than doubled the size of the measured and indicated resources of the project to about 2.04-million ounces.
Further exploration targets have the potential to add up to another two-million ounces to the resources of Buckreef.
TGC is targeting production of 150 000 oz/y to 175 000 oz/y of gold at Buckreef.