- TRX Gold (TNX) operating subsidiary, Buckreef Gold Corporation Limited, has entered into a pre-paid gold purchase agreement with OCIM Metals & Mining SA
- The proceeds from this financing will enable Buckreef Gold to make productivity enhancing purchases, and expedite further exploration at Buckreef Gold
- The OCIM group of private companies invests in a wide variety of instruments and provides financing to the value chain with equity, debt, and alternative investments
- TRX Gold is a mineral resource company advancing the Buckreef Gold Project
- TRX Gold Corporation (TNX) opened trading at C$0.481 per share
TRX Gold (TNX) operating subsidiary, Buckreef Gold Corporation Limited, has entered into a pre-paid gold purchase agreement with OCIM Metals & Mining SA.
The $5 million total contract price can be made available to Buckreef Gold in tranches with a $2.5 million upfront tranche and further tranches to be drawn over the next 18 months at Buckreef Gold’s option.
The proceeds from this financing will enable Buckreef Gold to make productivity enhancing purchases, such as acquiring mining equipment to replace higher cost rental equipment which will help improve mining and processing operating costs over time. Additionally, it provides the flexibility to expedite exploration at Buckreef Gold.
Stephen Mullowney, CEO of TRX Gold, commented on the agreement.
“As operations continue to ramp-up at Buckreef Gold, non-dilutive alternative sources of financing continue to emerge for the enterprise. This financing enables the company to further reduce operating costs. The financing amount is easily supported by Buckreef Gold’s forecast production profile which is anchored by a robust stockpile and strong mining rates. We would like to thank OCIM for their support throughout the financing process and for an efficient, straightforward due diligence process.” noted
The OCIM group of privately held companies has a long and successful history as a trader and financier of strategic assets. OCIM invests in a wide variety of instruments and provides financing to the value chain with equity, debt, and alternative investments.
TRX Gold is a mineral resource company advancing the Buckreef Gold Project.
TRX Gold Corporation (TNX) opened trading at C$0.481 per share.
