Raises US$19.8 Million In Well Supported Offering
Tanzanian Gold Corporation (TSX:TNX) has successfully closed registered direct Private Placement offering to raise US$19.8 million.
Net proceeds from the offering will be used for the continued development of the Buckreef Gold Project in Tanzania, including capital expenditures, continued exploration, general corporate purposes and working capital.
The Buckreef Gold Mine Re-Development Project was acquired from the Tanzanian State Mining Company in December 2010. Under a Heads of Agreement concluded with the state-owned company, Tanzanian Royalty has the right to earn a 55% interest in Buckreef with Stamico holding the remainder.
Tanzanian Gold Corporation and STAMICO are building a significant gold project at Buckreef that is based on an expanded Mineral Resource base and the treatment of its mineable Mineral Reserves in two standalone plants.
Measured and Indicated Mineral Resources now stand at a combined tonnage of 35.88MT at 1.77g/t gold containing 2,036,280 ounces of gold.
The Buckreef Project also contains an Inferred Mineral Resource of 17.8MT at 1.11g/t gold for contained gold of 635,540oz. The Company is actively investigating and assessing multiple exploration targets on its property.
Tanzanian Gold Corporation is advancing on three value-creation tracks:
- Strengthening its balance sheet from expanding near-term production to 15,000 – 20,000 oz. of gold per year from the processing oxides upon approval of an expanded oxide plant.
- Advancing the Final Feasibility Study for a stand-alone sulphide treating plant that is substantially larger than previously modelled and targeting significant annual gold production.
- Continuing with a drilling programme to further test the potential of its Mineral Resource base by: (i) drilling at deeper levels; (ii) drilling new oxide targets; (iii) infill drilling to upgrade Mineral Resources currently in the Inferred category; and (iv) a step-out drilling program in the Northeast Extension.
