TRX Gold Corporation (TSX:TNX) (NYSE American:TRX) is pleased to announce that its operating subsidiary, Buckreef Gold Corporation Limited, has entered into a pre-paid gold purchase agreement with a contract price totaling US$5 million with OCIM Metals & Mining SA. The 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. Tranche 1 in this non-dilutive financing includes a 6-month grace period and a repayment period over the following 12 months as quarterly deliveries of a pre-determined quantity of gold. The actual quantity will be determined by applying a discount to prevailing gold spot prices on the date funds are transferred to Buckreef Gold.

The proceeds from this financing will enable Buckreef Gold to opportunistically make productivity enhancing purchases, for example, 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 and sulphide development programs at Buckreef Gold.

The expanded 1,000+ tonne per day processing plant construction continues to be on time with an expected completion date in calendar Q3 2022, at a capital cost of $4 million, which remains on budget. The Company plans to provide an update on the expanded processing plant in due course.

“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 opportunistically move up high return quick payback purchases, enabling the Company to further reduce operating costs. The Company continues to be prudent in financing operations by balancing capital requirements, funding amounts and managing overall enterprise liquidity. 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 Stephen Mullowney, CEO of TRX Gold.

About OCIM:

The OCIM group of privately held companies has a long and successful history as a Trader and Financier of Strategic Assets. Established in Paris in 1961, OCIM is headed by a third-generation member of the founding family. Besides its core historical business in Real Estate, OCIM has diversified into other strategic tangible assets such as gold, silver and platinum via its Geneva-based subsidiary. As a Merchant, OCIM trades physical metals across the full value chain, from producers to end users. As a Financier, OCIM invests in a wide variety of instruments and provides financing to the value chain with equity, debt, and alternative investments.

About TRX Gold Corporation

TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 2020, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 oz of gold and an Inferred Mineral Resource of 17.8 MT at 1.11g/t gold for 635,540 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold Resource base and advancing the Sulphide Ore Project which represents 90% of current gold Resources. TRX Gold’s actions are led by the highest ESG standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in Geita Region, Tanzania.