TRX Gold Announces New Financing Facilities
TRX Gold has secured multiple financing facilities to strengthen its capital position and accelerate growth. The company announced three key arrangements:
1. A credit agreement with Stanbic Bank Tanzania comprising a $5 million revolving credit facility (12-month tenor) and a $4 million vehicle and asset financing facility (36-month tenor).
2. An unsecured Gold Prepayment Facility with Auramet allowing the sale of up to 1,000 troy ounces of gold bullion on a 21-day revolving basis for one year, potentially providing access to approximately $2.75 million in working capital.
3. A renewed At The Market (ATM) Offering Agreement with H.C. Wainwright and Roth Capital, enabling the company to sell shares worth up to $25 million. This replaces prior facilities worth $20 million that expired in January 2025.
TRX Gold ha ottenuto diversi finanziamenti per rafforzare la sua posizione patrimoniale e accelerare la crescita. L'azienda ha annunciato tre accordi chiave:
1. Un accordo di credito con Stanbic Bank Tanzania, che comprende una linea di credito revolving di $5 milioni (durata di 12 mesi) e una linea di finanziamento per veicoli e beni di $4 milioni (durata di 36 mesi).
2. Un accordo di anticipo su oro non garantito con Auramet, che consente la vendita di fino a 1.000 oncia troy di oro in lingotti su base revolving di 21 giorni per un anno, potenzialmente fornendo accesso a circa $2,75 milioni in capitale circolante.
3. Un accordo rinnovato di Offerta nel Mercato (ATM) con H.C. Wainwright e Roth Capital, che consente all'azienda di vendere azioni per un valore fino a $25 milioni. Questo sostituisce precedenti linee di credito di $20 milioni scadute a gennaio 2025.
TRX Gold ha asegurado múltiples facilidades de financiación para fortalecer su posición de capital y acelerar el crecimiento. La compañía anunció tres acuerdos clave:
1. Un acuerdo de crédito con Stanbic Bank Tanzania que comprende una facilidad de crédito rotativa de $5 millones (plazo de 12 meses) y una facilidad de financiación de vehículos y activos de $4 millones (plazo de 36 meses).
2. Una Instalación de Pre-pago de Oro no garantizada con Auramet que permite la venta de hasta 1.000 onzas troy de lingotes de oro en base rotativa de 21 días durante un año, proporcionando acceso potencial a aproximadamente $2,75 millones en capital de trabajo.
3. Un acuerdo renovado de Oferta en el Mercado (ATM) con H.C. Wainwright y Roth Capital, que permite a la empresa vender acciones por un valor de hasta $25 millones. Esto reemplaza instalaciones anteriores por un valor de $20 millones que expiraron en enero de 2025.
TRX Gold는 자본 위치를 강화하고 성장을 가속화하기 위해 여러 자금 조달 수단을 확보했습니다. 회사는 세 가지 주요 계약을 발표했습니다:
1. Stanbic Bank Tanzania와의 신용 계약으로 500만 달러 회전 신용 시설 (12개월 만기)과 400만 달러 차량 및 자산 금융 시설 (36개월 만기)로 구성됩니다.
2. Auramet와의 무담보 금 선지급 시설로, 1년 동안 21일 회전 방식으로 최대 1,000 트로이 온스의 금괴를 판매할 수 있으며, 이는 잠재적으로 약 275만 달러의 운영 자본에 접근할 수 있습니다.
3. H.C. Wainwright 및 Roth Capital과의 새롭게 갱신된 시장 내(ATM) 공급 계약으로, 회사는 최대 2,500만 달러 상당의 주식을 판매할 수 있습니다. 이는 2025년 1월에 만료된 2천만 달러 규모의 기존 시설을 대체합니다.
TRX Gold a sécurisé plusieurs facilités de financement pour renforcer sa position en capital et accélérer sa croissance. La société a annoncé trois accords clés :
1. Un accord de crédit avec Stanbic Bank Tanzanie comprenant une facilité de crédit renouvelable de 5 millions de dollars (durée de 12 mois) et une facilité de financement de véhicules et d'actifs de 4 millions de dollars (durée de 36 mois).
2. Une facilité de prépaiement d'or non garantie avec Auramet permettant la vente de jusqu'à 1.000 onces troy de lingots d'or sur une base renouvelable de 21 jours pendant un an, offrant ainsi potentiellement l'accès à environ 2,75 millions de dollars de fonds de roulement.
3. Un accord d'offre At The Market (ATM) renouvelé avec H.C. Wainwright et Roth Capital, permettant à l'entreprise de vendre des actions d'une valeur allant jusqu'à 25 millions de dollars. Cela remplace des facilités précédentes d'une valeur de 20 millions de dollars qui ont expiré en janvier 2025.
TRX Gold hat mehrere Finanzierungsquellen gesichert, um seine Kapitalposition zu stärken und das Wachstum zu beschleunigen. Das Unternehmen gab drei wichtige Vereinbarungen bekannt:
1. Eine Kreditvereinbarung mit der Stanbic Bank Tanzania, die eine 5 Millionen Dollar revolving Kreditlinie (Laufzeit von 12 Monaten) und eine 4 Millionen Dollar Fahrzeug- und Vermögensfinanzierung (Laufzeit von 36 Monaten) umfasst.
2. Eine ungesicherte Gold-Vorauszahlungsvereinbarung mit Auramet, die den Verkauf von bis zu 1.000 Unzen Goldbarren auf einer 21-tägigen revolving Basis über ein Jahr ermöglicht und potenziell den Zugang zu etwa 2,75 Millionen Dollar an Betriebskapital bieten kann.
3. Eine erneuerte At the Market (ATM) Angebot-Vereinbarung mit H.C. Wainwright und Roth Capital, die es dem Unternehmen ermöglicht, Aktien im Wert von bis zu 25 Millionen Dollar zu verkaufen. Dies ersetzt frühere Einrichtungen im Wert von 20 Millionen Dollar, die im Januar 2025 abgelaufen sind.
- Secured first-ever credit facilities totaling $9 million from Stanbic Bank
- Established gold prepayment facility worth potential $2.75 million with Auramet
- Increased ATM facility capacity from $20M to $25M
- Company has evolved from small test plant to 2,000 tonne per day commercial operation
- Potential shareholder dilution through $25M ATM offering
- Short-term nature of revolving credit facility (12-month tenor)
Insights
The announcement of multiple new financing facilities represents a significant milestone in TRX Gold's corporate evolution, particularly securing its first traditional bank credit facility through Stanbic Bank Tanzania. The
The financing package is strategically structured with complementary elements:
- The Stanbic facility provides longer-term structured financing with the 36-month VAF component
- The Auramet gold prepayment facility offers flexible working capital management through 21-day rolling access to approximately
$2.75 million - The renewed
$25 million ATM facility provides a larger capital reserve compared to the previous$20 million combined facilities
The working capital optimization potential is particularly noteworthy. The revolving credit line combined with the gold prepayment facility gives management multiple tools to manage cash flow timing mismatches and seasonal fluctuations while maintaining operational momentum. This flexibility could be important for maintaining consistent expansion activities without disruption.
The transition from the OCIM metals purchase agreement to the Auramet facility suggests improved terms and counterparty relationships, reflecting the company's stronger market position. The fact that the previous ATM facility went unused while securing traditional bank financing indicates disciplined capital management and improving creditworthiness.
TORONTO, Feb. 10, 2025 (GLOBE NEWSWIRE) -- 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
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
Auramet is one of the largest physical precious metals merchants in the world with over
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
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
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
IR@TRXgold.com
www.TRXgold.com
FAQ
What financing facilities did TRX Gold secure in February 2025?
How much working capital can TRX Gold access through the Auramet gold prepayment facility?
What is the tenor of TRX Gold's new Stanbic Bank credit facilities?
How does TRX Gold plan to use the proceeds from the $25M ATM offering?
