Tanzanian Royalty Completes $4.8 Million Private Placement with Two European Investment Funds
Tanzanian Royalty Exploration Corporation announces that an arm′s length
private placement with two European investment funds has closed. The
private placement consisted of an aggregate 800,000 common shares at a
price of $6.052 per share, representing the five-day weighted average
trading price of the common shares on the Toronto Stock Exchange for the
period ended September 21, 2010 less a 15% discount, and an aggregate
200,000 common share purchase warrants exercisable at a price of $7.309
per share. In addition, the Company has paid a finder′s fee payable in
64,000 common shares at the subscription price of $6.052/share.
The funds will be used for general corporate purposes including the
purchase of two modular-type gravity plants for the Company′s Lunguya
Gravels Project in the Lake Victoria Greenstone Belt. Rated at 100
tonnes per hour, the plants will include crushers and cyclones as part
of the initial process flow sheet.
Tanzanian Royalty is a financial gold company with advanced and early
stage gold and base metal exploration projects in The Republic of
Tanzania. Among the Company′s key partners in Tanzania is Jinchuan
Group, the largest producer of nickel and cobalt in China.
Respectfully Submitted,
'Joseph Kahama?
Joseph K. Kahama
President
For further information, please contact Investor Relations at
1-800-811-3855
Visit our website: www.TanzanianRoyaltyExploration.com
The Toronto Stock Exchange and NYSE Amex Equities have not reviewed and
do not accept responsibility for the adequacy or accuracy of this release
Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission limits disclosure for U.S. reporting purposes to
mineral deposits that a company can economically and legally extract or
produce. We use certain terms on this news release, such as 'reserves?,
'resources?, 'geologic resources?, 'proven?, 'probable?, 'measured',
'indicated', or 'inferred' which may not be consistent with the reserve
definitions established by the SEC.U.S. Investors are urged to
consider closely the disclosure in our Form 20-F, File No. 001-32500.You can review and obtain copies of these filings from the SEC's
website at http://www.sec.gov/edgar.shtml.
Certain information presented in this release may constitute
'forward-looking statements? within the meaning of the Private
Securities Litigation Reform Act of 1995.Such
forward-looking statements are based on numerous assumptions, and
involve known and unknown risks, uncertainties and other factors,
including risks inherent in mineral exploration and development, which
may cause the actual results, performance, or achievements of the
Company to be materially different from any projected future results,
performance, or achievements expressed or implied by such
forward-looking statements.Investors are referred to our
description of the risk factors affecting the Company, as contained in
our Form 20-F, File No. 001-32500, for more information concerning these
risks, uncertainties, and other factors.
Tanzanian Royalty Exploration Corporation
Connecticut Office:
Tel:
860-364-1830
Fax: 860-364-0673
or
South Surrey Office:
Toll
Free: 1-800-811-3855
Tel: 604-536-7873
Fax: 604-536-2529
investors@TanzanianRoyaltyExploration.com
www.TanzanianRoyaltyExploration.com