RiverFort Global Opportunities PLC Investment in the Gold Sector (8796T)
23 Luglio 2020 - 9:24AM
UK Regulatory
TIDMRGO
RNS Number : 8796T
RiverFort Global Opportunities PLC
23 July 2020
23 July 2020
RiverFort Global Opportunities plc
("RGO" or the "Company")
Investment in the gold sector
RGO is pleased to announce that it has participated for up to
US$1.72 million in the US$14 million mine finance package for
Tanzanian Gold Corporation ("TanGold"), arranged by RiverFort
Global Capital Limited, announced on 23 July 2020. Post the success
of its initial gold production phase, the funding package will
enable TanGold to invest in additional plant and equipment that
should result in an increase in its oxide processing capacity of
approximately eight times thereby leading to a significant increase
in the current level of gold production. RGO will generate an
investment return from this funding through a combination of
interest income, equity conversion upside and warrant exercise.
TanGold is listed on the TSX and NYSE with a market
capitalisation of over US$180 million. It is a joint owner, along
with the Tanzanian government, of a gold company focused on the
development of a significant gold asset in Tanzania called the
Buckreef Project where it has recently doubled the level of
measured and indicated resources to 2.036 million ounces.
Furthermore, TanGold believes that it has identified further NI
43-101 compliant exploration mining targets that have the potential
to add up to another 2 million ounces . In June 2020, it commenced
commercial production at its oxide plant. This financing package
comprises a convertible loan of up to US$14 million to be drawn in
a number of phased tranches linked to the capital expenditure plan.
US$4 million of the first tranche is to be drawn initially.
The financing package will be used to fund 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 . The company's long term
gold production target (from oxide and sulphide) is an annual
production level of between 150,000 to 175,000 oz of gold.
The Company will initially invest US$1.4 million on behalf of
both RGO and RiverFort Global Opportunities PCC Limited ("RGO
PCC"), with RGO retaining US$490,000 of the loan and RGO PCC
funding the remainder via participation in RGO's investment. The
same process will be followed for the additional drawdowns.
Further information on TanGold can be found on the company's
website which is www.tangoldcorp.com.
Phillip Haydn-Slater, Non-executive Chairman commented:
"We are pleased to be gaining exposure to the gold sector at a
very interesting time against the background of a rising gold price
environment. This funding shows how we can deploy capital in
significant businesses in order to help the implementation of their
strategy. We are very pleased to be helping to fund TanGold at the
start of a very exciting growth phase."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For more information please contact:
RiverFort Global Opportunities
plc +44 20 3368 8978
Phillip Haydn-Slater,
Non-executive Chairman
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Nominated Adviser +44 20 7628 3396
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Beaumont Cornish
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Roland Cornish/Felicity
Geidt
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Joint Broker +44 20 7186 9950
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Shard Capital Partners
LLP
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Damon Heath/ Erik Woolgar
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Joint Broker +44 20 7562 3351
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Peterhouse Capital Limited
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Lucy Williams
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END
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