TRX GOLD Corp (TSX:TRX): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

15 May 2023capital raising announcement▼ Bad

On May 12, 2023 the company signed an at-the-market agreement with H.C. Wainwright (lead agent) and Roth Capital Partners to sell common shares from time to time with an aggregate offering price of up to $10,000,000, with sales through NYSE American only (none on the TSX). It will pay a 3.0% commission, plans to use proceeds for working capital and general corporate purposes, and no shares are said to have been sold yet; any sales would dilute existing holders.

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27 Jan 2022capital raising announcement▼ BadMajor

On January 26, 2022 the company closed a registered direct offering of 17,948,718 shares at $0.39 with one institutional investor, plus warrants over the same number of shares at $0.44 (five years), raising about US$6.4 million net. The price is well below the US$0.65 paid in the February 2021 raise (an inference: new money is coming in at a lower share price). Proceeds are earmarked for expanding the plant from 360 tpd to 1,000+ tpd (expected Q2/Q3 2022, forecast 15,000-20,000 oz of gold a year), exploration at Buckreef Main, Buckreef West and Anfield, and sulphide metallurgical work.

What it means for a shareholder

17.9m new shares at C$0.390 to raise about C$6.4m. That's 6.6% dilution: every existing holder's slice gets 6.6% smaller. If you held C$1,000 of shares (2,564 at the issue price), your slice goes from 0.00101% to 0.00094% of the company. To keep it you'd need 181 more shares - about C$71 at the issue price.

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12 Feb 2021capital raising announcement● NeutralMajor

On February 11, 2021 the company closed a registered direct offering of 32,923,078 shares at US$0.65 each, plus warrants over 16,461,539 shares (US$0.80 exercise, five years, exercisable after six months), for net proceeds of about US$19.8 million. The money is intended for continued development of the Buckreef Gold Project (with joint venture partner STAMICO), exploration, and working capital. This is a much larger raise than the December 2020 one and dilutes existing holders.

What it means for a shareholder

32.9m new shares at US$0.650 to raise about US$19.8m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held US$1,000 of shares (1,538 at the issue price), your slice goes from 0.000769% to 0.000661% of the company. To keep it you'd need 253 more shares - about US$164 at the issue price.

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16 Dec 2019capital raising announcement▼ Bad

Tanzanian Gold Corporation (TRX Gold) agreed on December 16, 2019 to sell up to 6,695,652 common shares at $0.575 each through underwriters led by R.F. Lafferty, on a 'best efforts' basis, meaning the underwriters are not obliged to buy any shares themselves. Closing was expected around December 18, 2019; the filing gives no total proceeds or use of funds, and new shares dilute existing holders.

What it means for a shareholder

6.7m new shares at C$0.575 to raise about C$3.8m. That's 4.3% dilution: every existing holder's slice gets 4.3% smaller. If you held C$1,000 of shares (1,739 at the issue price), your slice goes from 0.00116% to 0.00111% of the company. To keep it you'd need 77 more shares - about C$44 at the issue price.

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