Tanzanian Gold First Closing of Financing
CONNECTICUT OFFICE: VANCOUVER OFFICE:
PO Box 577 #202, 5626 Larch Street
Sherman, CT Vancouver, BC
U.S.A. 06784 Canada V6M 4E1
Phone: 1.844.364.1830 Toll Free: 1.844.364.1830
Fax: 1.860.799.0350
www.tangoldcorp.com
Tanzanian Gold First Closing of Financing
For Immediate Release July 28, 2020
VANCOUVER (GlobeNewswire) - Tanzanian Gold Corp. (TSX: TNX); (NYSE
American: TRX) (“Tanzanian Gold” or the “Company”) is pleased to announce that it
has closed the First Closing of US$4 Million of its previously announced financing
(July 23, 2020) of up to US$14 million of unsecured convertible debentures (the
“Financing”) with institutional investors Riverfort Global Opportunities PLC. and YA II
PN, Ltd. (collectively, the “Investors”).
The proceeds from the Financing will be utilized for a significant expansion of the
Buckreef Project oxide mining and processing operation, the advancement of a
Feasibility Study for the larger sulphide mining complex, the continuation of multiple
drilling programs, and general corporate purposes.
About Tanzanian Gold Corporation
Tanzanian Gold Corporation is building a significant gold mine at the Buckreef Project
in Tanzania. The Company commenced production at its oxide plant in June 2020.
Tanzanian Gold is now moving ahead to significantly expand its oxide plant’s
processing capacity. An ongoing drill program has, to date, more than doubled the size
of Measured and Indicated Resources to 2.036 million ounces. NI 43-101 compliant
exploration mining targets have the potential to add up to another 2 million ounces.
Tanzanian Gold is simultaneously advancing on three value-creation tracks:
1. Increasing production by expanding capac ity at its oxide processing plant, which
will operate separate and stand-alone during the full life of the larger sulphide
mining and processing operation;
2
2. Advancing Final Feasibility for th e sulphide operation utilizing a plant
substantially larger than previously modelled, targeting annual gold production of
150,000 to 175,000 ounces; and
3. Considering an underground gold mining component at Buckreef. The Company
has started ultra-deep drilling and completed a Level 1 stope design. The
Company will start infill drilling to upgrade ounces currently in the Inferred
category.
Respectfully Submitted,
James E. Sinclair
Executive Chairman
For further information, please contact Michael Martin, Investor Re lations, via email at
[email protected], direct line 860-248-0999, or vi sit the Company website at
www.tangoldcorp.com
The Toronto Stock Exchange and NYSE American LLC have not reviewed and do
not accept responsibility for the adequacy or accuracy of this release
Cautionary Note to U.S. Investors - The United Stat es Securities and Exchange Commission limits disclosure for
U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We
may use certain terms on this news release, such as “reserves”, “resources”, “geologic resources”, “proven”,
“probable”, "measured", "indicated", or "inferred" which may not be consistent with the reserve definitions
established by the SEC. U.S. Investors are urged to cons ider closely the disclosure in our SEC filings. You can
review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml
This news release contains certain forward-looking statements and forward-looking information. All statements, other than
statements of historical fact, included herein are forward-lo oking statements and forward-looking information that involve
various risks and uncertai nties. There can be no assurance that such statements will pr ove to be accurate, and actual
results and future events could differ materially from those anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed
from time-to-time with the British Columbia, Alberta and Ontario provincial securities regulatory authorities.
Certain information presented in this release may constitute “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are based on numerous assumptions, and
involve known and unknown risks, uncertainties and other fact ors, including risks inherent in mineral exploration and
development, which may cause the actual results, performance, or achievements of the Company to be materially different
from any projected future results, performance, or achievements expressed or implied by such forward-looking statements.
Investors are referred to our description of the risk factors affecting the Company, as contained in our SEC filings, including
our annual report on Form 20-F for more information concerning these risks, uncertainties, and other factors. Such forward-
looking statements include, but are not lim ited to, that the Company will be able to build shareholder value, that the
Company will be successful in its expansion at the Buckreef project, that it will be able to build a mine, and that the Company
will be able to achieve positive cash flow.