Tanzanian Royalty Exploration TNX is a gold explorer in Tanzania Africa. The company working has been there for close to 10 years now, maybe even a bit longer. They are developing a gold project called Buckreef. The company hasn't issued many news releases over the past while and over the past year the trading of stock sank to lows in the 40 cent range for most of 2015. Prior to that the stock was well into the $2 range. Back in 2006 the stock topped $10 and after falling into the $2 range during the 2008-09 crisis, the stock still rebounded back to the $8 range. However since that time the stock has really gone nowhere but down.
Then this past week the company issued a press release stating that Buckreef mine had been invaded by illegal artisinal miners. In it's press release it states:
Tanzanian Royalty Exploration Corp.'s subsidiary Tanzam has provided notice of force majeure under its agreement with Stamico, owned by Tanzanian Treasury. This notice of force majeure is based upon the invasion and forced occupation by several hundred illegal miners of the company's mining properties including the South pit and other areas within the Buckreef site, thereby endangering its team and preventing Tanzam from continuing its mining operations. This continuing intrusion into its mines now at night is well known to the government authorities, as are the active illegal mining operations taking place right on the company's border. The company ordered its security force to stand down in order to prevent a more serious confrontation. This event, the company believes, may have been incited by an energetic speech made in the local village by the Deputy Minister of Energy and Minerals stating that land would be given to the artisans for legal mining within 14 days. On the 15th day the large invasion took place. The company's decision to act was to protect the assets of its stockholders and put a stop to these actions which do not respect contracts or due process of law.
Of course you can well image what happened to the stock price. DOWN! Sell off all the way to 24 cents. Almost a million shares traded as who know who dumps the stock. The on the Monday Feb. 8 the company issued another press release stating their first gold pour. The press release stated:
Tanzanian Royalty Exploration Corp.'s 55-per-cent-owned Buckreef redevelopment gold project in Tanzania has successfully completed its first gold pour.
First gold has been poured from the pilot carbon-in-column process plant at the project. The timing and amount of the pour of gold were not a decision of management but were done in response to a request made by the Deputy Minister of Energy and Minerals of Tanzania. As a show of reasonable willingness to co-operate on this non-contract item, the company did what it preferred not to do -- pour prematurely to proper market price. It is the opinion of management that in time the gold price will rise to at least $800 higher than it was at the time of the pour.
Of course this news turn the stock back around and in comes the buyers. Those who never got a chance to sell the previous trading day semmed happy to get while the getting was good.
Then today Feb. 9 another press release is issued stating that the Joseph K. Kahama, chairman of the board has resigned. With that news the stock took off and ended the day 18% to close the day at 35 cents. It was 40 cents when the so called bad news came out, fell all the way to 24 cents and got back as high as 38 today. Talk about extreme trading.
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