OCIM closes a US$ 5 Million Prepaid Gold Purchase Agreement with TRX Gold
Ocim Metals & Mining SA (“OCIM”) is pleased to announce the closing of a prepaid gold purchase deal in the amount of US$ 5 million with TRX Gold Corporation (TSX: TNS; NYSE: TRX).
Known until May 2022 as Tanzanian Gold Corp, TRX Gold is a rapidly growing mining company listed both on the New York Stock Exchange (NYSE) and on Toronto’s TSX exchange. The company operates the Buckreef Gold Mining Project (“Buckreef Gold”), a gold project of some two million ounces located in the Geita District, south of Lake Victoria, approximately 110 km southwest of the town of Mwanza. Encouraged by the authorities, who are keen to accelerate the country’s gold mining industry, TRX Gold’s first expansion of its ore processing plant is substantially complete. Operating through a joint venture with state-owned company Stamico, Buckreef Gold has also entered into a refining agreement with Argor Heraeus, a leading international gold refiner based in Switzerland.
OCIM has provided TRX Gold with an alternative funding consisting of a US$5 million contract for a prepaid gold purchase to be disbursed in two tranches. A first tranche of US$2.5million has been funded on 31 August 2022, featuring a 6-months grace period and a repayment period over one year as quarterly deliveries of a pre-determined and fixed quantity of gold.
This non dilutive and tailor-made financing will allow TRX Gold to make productivity enhancing purchases and provides flexibility for exploration and development programs at Buckreef Gold.
“This landmark transaction confirms OCIM’s entry on the African continent and allows us to support a project that is strategic to the development of its country's mining industry. It also operates under particularly demanding ESG standards designed to meet the United Nations' Sustainable Development Goals,” explained Laurent Mathiot, Chairman and CEO of OCIM.
ABOUT TRX GOLD CORPORATION
TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 2020, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for 635,540 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold Resource base and advancing the Sulphide Ore Project which represents 90% of current gold Resources. TRX Gold’s actions are led by the highest ESG standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in Geita Region, Tanzania.
To learn more about TRX Gold Corporation visit www.trxgold.com