Theta Gold Mines Ltd (ASX:TGM) has raised approximately A$1.7 million (before fees) in a private placement, with funds to be used for the advancement of its TGME Gold Project in South Africa.
The company will issue up to 24,285,715 new fully paid TGM ordinary shares at the issue price of A$0.071 cents as part of the placement to professional and sophisticated investors.
These shares are expected to be issued on Thursday, November 3, 2022.
Chairman Bill Guy believes TGM is now in a strong position to become a mid-tier gold producer, having recently signed a $110 million (US$70 million) term sheet with Sprott for the TGME Gold Project, which puts it on the path to achieving its initial 1.24-million-ounce Life of Mine strategy of first gold production.
Read: Theta Gold Mines signs $110 million term sheet with Sprott for TGME Gold Project
“Both the signing of the A$110 million Sprott Term Sheet for Stream funding and the completion of the definitive feasibility study for the TGME Underground Gold Mine marks significant achievements for the company and allow us to move forward providing a clear road map for Theta Gold to transition into an operational, mid-tier gold producer,” Guy said.
Where the money will go
TGM will put the money towards the following:
- project expenditure including preliminary development and planning activities for the TGME Gold Project;
- progress towards completion of permitting approvals for the project; and
- general working capital, corporate overheads and loan interest and principal repayments.
“Due diligence work is being prepared for Sprott’s team and their various appointed consultants. The board shall provide an update of this progress in December 2022,” Guy said.
“I welcome the new strategic international and domestic investors to our registry as funds will be used to progress our pre-development work including final permitting and various operational readiness spends.
“In addition to this private placement, the board would like to reward existing shareholders the opportunity to participate in an SPP on the same pricing terms as this private placement.”
TGM’s SPP
As well as the private placement, TGM is launching an SPP to raise approximately A$1.5 million (before costs) on the same terms as the placement.
Eligible shareholders can apply for up to $30,000 worth of shares at the same issue price as the placement, being $0.07 per share.
About TGM
Theta Gold’s core project, the TGME Gold Project, is next to the historical gold mining town of Pilgrim’s Rest in Mpumalanga Province, some 370 kilometres northeast of Johannesburg by road or 95 kilometres north of Nelspruit (capital city of Mpumalanga Province).
Following small-scale production from 2011–2015, TGM is focusing on the construction of a new gold processing plant within its approved footprint at the TGME plant, and for the processing of the Theta Open Pit oxide gold ore.
Nearby surface and underground mines and prospects are expected to be further evaluated in the future.
TGM is looking to build a solid production platform to more than 160,000 ounces per annum based primarily around shallow, open-pit or adit-entry shallow underground hard rock mining sources.
The company has access to more than 43 historical mines and prospect areas that can be accessed and explored, with in excess of 6.7 million ounces of historical production recorded.