Mining exploration company Tanzanian Gold Corporation (TanGold) (TSX:TNX) (NYSE:TRX) recently announced that it has successfully closed a USD 7 million direct offering with a single institutional investor for the purchase and sale of 17,948,718 of the company’s common shares.
The net proceeds from the offering are approximately USD 6.4 million that the company intends to use to accelerate the execution of its business plan that includes the continued buildout of the gold processing plant expansion at the Buckreef gold mine.
The plant is expected to be completed in calendar Q2/Q3 2022 and is forecast to produce 15,000 – 20,000 ounces of gold per year.
In addition, the proceeds will be used in exploration drilling with the goal of expanding mineral resources, discovering new mineral resources and converting mineral resources to mineral reserves, including the Buckreef Main Zone northeast extension, Buckreef West Zone and the Anfield Zone.
The Buckreef Gold Project comprises four gold deposits namely Buckreef, Eastern Porphyry, Tembo, and Bwinga, all within 4km of each other.
The Buckreef Project is located in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza.
The Buckreef Project is fully licensed for mining and the extraction of gold and is developed by TanGold along with its joint venture partner, the Tanzania State Mining Corporation (Stamico).