TRX Gold Announces New Financing Facilities
PRESS
RELEASE
For
immediate
release
TRX Gold Announces New Financing Facilities
TORONTO, Ontario, February 10, 2025 – TRX Gold Corporation (TSX: TRX) (NYSE American: TRX) (the
“Company”
or
“TRX
Gold”)
today
announced
that
Buckreef
Gold
Limited
(“Buckreef
Gold”)
has
entered
into
its
first
ever
credit
agreement
with
Stanbic
Bank
Tanzania
Limited
(“Stanbic”)
and
a
Gold
Prepayment
Facility
with
Auramet
International,
Inc.
(“Auramet”).
TRX
Gold
has
also
renewed
its
At
The
Market
Offering
Agreement
(“ATM”)
with
H.C.
Wainwright
&
Co.,
LLC
(“H.C.
Wainwright”)
as
Lead
Agent
and
Roth
Capital
Partners,
LLC
(“Roth
Capital”)
as
Co-Agent.
The
combination
of
these
facilities
provides
the
Company
with
access
to
supplementary
capital,
strengthened
liquidity,
and
additional
financial
flexibility
to
help
accelerate
growth
in
the
short
to
medium
term.
Credit Facility with Stanbic
The credit agreement consists of a $5 million revolving credit facility and a $4 million vehicle and asset
financing
(“VAF”)
facility
that
may
be
used
at
the
Company’s
discretion.
The
$5
million
revolving
credit
facility
has
a
maximum
tenor
of
twelve
months
and
the
$4
million
VAF
facility
has
a
maximum
tenor
of
thirty-six
months.
The
revolving
credit
facility
provides
the
Company
with
access
to
supplementary
liquidity
and
may
be
used
to
support
the
working
capital
requirements
of
the
business
at
the
Company’s
discretion.
This
facility
will
allow
the
Company
to
make
cost
effective
decisions
for
deployment
of
capital
across
its
operations
to
support
continued
expansion
and
growth.
The revolving credit facility and VAF facility include standard and customary financing terms and conditions,
including
those
related
to
security,
fees,
representations,
warranties,
covenants,
and
conditions.
This
is
the
first
credit
facility
entered
into
by
Buckreef
Gold.
Stanbic Bank Tanzania is a leading financial services provider in Tanzania, offering a comprehensive range of
products
and
services
to
personal,
business,
and
corporate
clients.
As
a
subsidiary
of
Standard
Bank
Group,
Stanbic
Bank
Tanzania
leverages
its
deep
local
knowledge
and
expertise
with
the
global
reach
and
capabilities
of
Standard
Bank
to
support
the
growth
and
development
of
its
clients.
Bankable Tanzania Limited served as Buckreef Gold's Transaction Advisor, responsible for structuring,
negotiating,
placing,
and
finalizing
the
Credit
Facility
with
Stanbic,
following
a
market
sounding
and
competitive RFP process.
Gold Prepayment Facility with Auramet
Buckreef Gold has also entered into a new unsecured Gold Prepayment Facility with Auramet through which
Buckreef
Gold
may,
at
its
discretion,
sell
to
Auramet
up
to
a
maximum,
aggregate
amount
of
1,000
troy
ounces
of
London
good
delivery
gold
bullion,
up
to
a
maximum
of
21
calendar
days
prior
to
delivery.
This
facility
revolves
on
a
21-day
basis
for
a
term
of
one
year. At
current
gold
spot
prices,
this
facility
can
provide
access
to
approximately
US$2.75
million
for
working
capital
purposes. The
Auramet
Gold
Prepayment
Facility
replaces
the
Gold
Doré
Purchase
Agreement
with
OCIM
Metals
and
Mining
S.A.
This
facility
will
help
provide
increased
financial
flexibility
to
help
manage
working
capital
fluctuations
and
to
accelerate
growth.
Auramet is one of the largest physical precious metals merchants in the world with over $25 billion in annual
revenues
and
provides
a
full
range
of
services
to
all
participants
in
the
precious
metals
supply
chain,
including
physical
metals
trading,
metals
merchant
banking
(including
direct
lending,
royalties
and
streams)
and
project
finance
advisory
services.
ATM Agreement with H.C. Wainwright and Roth Capital
The Company renewed its At The Market Offering Agreement with H.C. Wainwright & Co., LLC as Lead Agent
and
Roth
Capital
Partners,
LLC
as
Co-Agent,
pursuant
to
which
the
Company,
at
its
discretion,
may
offer
and
sell,
from
time
to
time,
through
the
Lead
Agent,
common
shares
without
par
value
(the
“Shares”)
having
an
aggregate
offering
price
of
up
to
US$25
million
(the
“Offering”).
The
renewed
ATM
facility
replaces
a
prior
$10
million
ATM
facility
with
H.C.
Wainwright
and
Roth
Capital
and
a
$10
million
purchase
agreement
with
Lincoln
Park
Capital
Fund,
LLC
(“Lincoln
Park”),
which
expired
in
mid-January
2025
pursuant
to
its
terms.
The Offering is being made in the United States pursuant to a registration statement on Form F-10 (File No.
333-283907)
filed
with
and
declared
effective
by
the
United
States
Securities
and
Exchange
Commission.
Sales of Shares will be made in transactions that are deemed to be “at-the-market distributions” as defined in
National
Instrument
44-102
-
Shelf
Distributions,
including
sales
made
directly
on
the
NYSE
American.
The
Shares
will
be
distributed
at
the
market
prices
prevailing
at
the
time
of
sale.
As
a
result,
prices
may
vary
as
between
purchasers
and
during
the
period
of
distribution.
No
Shares
in
this
Offering
will
be
sold
on
the
Toronto
Stock
Exchange
or
any
other
trading
market
in
Canada.
The
Company
is
relying
on
section
602.1
of
the
TSX
Company
Manual
for
an
exemption
for
eligible
interlisted
issuers
from
TSX
requirements.
The Company intends to use the ATM prudently based on prevailing market conditions. If TRX Gold chooses to
sell
Shares
under
the
ATM
Offering,
the
Company
intends
to
use
the
net
proceeds
of
this
offering
for
drilling,
exploration
and
technical
work
for
the
development
of
the
sulphide
mineralized
material
at
our
Buckreef
Gold
Project,
and
for
working
capital
and
other
general
corporate
purposes.
You can review the Company’s SEC filings and the Registration Statement by accessing the SEC’s internet site at http://www.sec.gov. The Company also maintains a website at http://www.trxgold.com, through which you can access the Company’s SEC filings.
TRX Gold’s CEO, Stephen Mullowney comments: “The Stanbic and Auramet facilities demonstrate a
progression
of
the
banking
facilities
available
to
the
Company
after
having
matured
from
an
operation
with
a
small
test
plant
in
2021
to
a
2,000
tonne
per
day
commercial
operation
today.
We
have
benefitted
from
having
supportive
partners
in
building
out
the
expanded
processing
plant,
and
these
new
facilities
provide
the
Company
with
added
options
and
increased
financial
flexibility
to
assist
us
in
managing
working
capital
fluctuations,
deploy
capital
more
effectively
and
accelerate
growth
in
the
short
to
medium
term.
The
renewed
ATM
facility
replaces
a
prior
$10
million
ATM
facility
and
a
$10
million
purchase
agreement
and
is
a
prudent,
normal
corporate
facility
to
have
in
place.
It
is
also
worth
noting
that
the
prior
ATM
facility
was
not
utilized.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be
any
sale
of
these
securities
in
any
state
or
jurisdiction
in
which
such
offer,
solicitation
or
sale
would
be
unlawful
prior
to
registration
or
qualification
under
the
securities
laws
of
any
such
state
or
jurisdiction.
Forward-Looking and Cautionary Statements
This press release contains certain forward-looking statements as defined in the applicable securities laws. All
statements,
other
than
statements
of
historical
facts,
are
forward-looking
statements.
Forward-looking
statements
are
frequently,
but
not
always,
identified
by
words
such
as
“expects”,
“anticipates”,
“believes”,
“hopes”,
“intends”,
“estimated”,
“potential”,
“possible”
and
similar
expressions,
or
statements
that
events,
conditions
or
results
“will”,
“may”,
“could”
or
“should”
occur
or
be
achieved.
Forward-looking
statements
relate
to
future
events
or
future
performance
and
reflect
TRX
Gold
management’s
expectations
or
beliefs
regarding
future
events
and
include,
but
are
not
limited
to,
statements
with
respect
to
continued
operating
cash
flow,
expansion
of
its
process
plant,
estimation
of
mineral
resources,
ability
to
develop
value
creating
activities,
recoveries,
subsequent
project
testing,
success,
scope
and
viability
of
mining
operations,
the
timing
and
amount
of
estimated
future
production,
and
capital
expenditure.
Although TRX Gold believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions,
such
statements
are
not
guarantees
of
future
performance.
The
actual
achievements
of
TRX
Gold
or
other
future
events
or
conditions
may
differ
materially
from
those
reflected
in
the
forward-looking
statements
due
to
a
variety
of
risks,
uncertainties
and
other
factors.
These
risks,
uncertainties
and
factors
include
general
business,
legal,
economic,
competitive,
political,
regulatory
and
social
uncertainties;
actual
results
of
exploration
activities
and
economic
evaluations;
fluctuations
in
currency
exchange
rates;
changes
in
costs;
future
prices
of
gold
and
other
minerals;
mining
method,
production
profile
and
mine
plan;
delays
in
exploration,
development
and
construction
activities;
changes
in
government
legislation
and
regulation;
the
ability
to
obtain
financing
on
acceptable
terms
and
in
a
timely
manner
or
at
all;
contests
over
title
to
properties;
employee
relations
and
shortages
of
skilled
personnel
and
contractors;
the
speculative
nature
of,
and
the
risks
involved
in,
the
exploration,
development
and
mining
business.
These
risks
are
set
forth
in
reports
that
TRX
Gold
files
with
the
SEC
and
the
various
Canadian
securities
authorities.
You
can
review
and
obtain
copies
of
these
filings
from
the
SEC's
website
at
http://www.sec.gov/edgar.shtml and the Company’s profile on the
System
for
Electronic
Document
Analysis
and
Retrieval
(“SEDAR+”)
at
www.sedarplus.ca.
The information contained in this press release is as of the date of the press release and TRX Gold assumes no duty to
update
such
information.
For investor or shareholder inquiries, please contact: Investors Investor Relations TRX Gold Corporation [email protected] www.TRXgold.com