07:15 AM EST, 02/10/2025 (MT Newswires) -- TRX Gold ( TRX ) on Monday said its Buckreef Gold mine secured a credit agreement with Stanbic Bank Tanzania and a gold prepayment facility with Auramet International.

TRX Gold ( TRX ) has also renewed its at-the-market offering agreement with H.C. Wainwright & Co. as lead agent and Roth Capital Partners as co-agent.

The facilities provide access to supplementary capital, strengthened liquidity and additional financial flexibility to accelerate growth, the company said.

The credit agreement with Stanbic consists of a $5 million revolving credit facility with a maximum tenor of 12 months and a $4 million vehicle and asset financing facility with a maximum tenor of 36 months.

The gold prepayment facility allows Buckreef Gold to sell to Auramet, a physical precious metals merchant, up to 1,000 troy ounces of London good delivery gold bullion, up to 21 calendar days prior to delivery. The facility revolves on a 21-day basis for a one-year term.

At current gold spot prices, the facility can provide access to about US$2.75 million for working capital purposes.

The gold prepayment facility replaces the gold dore purchase agreement with OCIM Metals and Mining.

Under the at-the-market offering agreement, the company may offer and sell from time to time common shares at a total offering price of up to US$25 million. This renewed 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, which expired in mid-January.

The company plans to use any net proceeds from the sale of shares under the ATM offering for drilling; exploration and technical work for the development of the sulphide mineralized material at the Buckreef Gold project; and for working capital and other general corporate purposes.