Tanzanian Gold Corp. is looking to expand its Buckreef Plant oxide mining and processing operation as it has announced the signing of a flexible financing agreement with institutional investors Riverfort Global Opportunities PLC. and YA II PN, Ltd for attaining unsecured convertible debentures of up to US$14 million. While it has also strengthened its balance sheet by converting outstanding gold loans and convertible loans of US$8.4 million into common shares.
The company will utilize the net proceeds from the Financing for a significant expansion of the Buckreef Project. While it will use the proceeds also for the advancement of a Feasibility Study for the larger sulphide mining complex, the continuation of multiple drilling programs, and general corporate purposes.
The new financing activities will help the mining company to empower shareholder value as the Company moves in to new phases of building a substantial mine at the Buckreef Project. It will support the expansion of production and helping it becoming a cash flow positive.
Subject to regulatory approval, Tanzanian Gold has plans to expand the oxide processing plant to the range of 40 tonnes per hour. Tanzanian Gold will provide details of the plant expansion in near future. The Financing will be held in multiple tranches while the company has made the information about the terms and conditions in its EDGAR filings.
Tanzanian Gold Executive Chairman Mr. James E. Sinclair said, “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.”