Tietto Minerals Ltd (ASX:TIE) is raising A$49.3 million to accelerate studies of the potential heap leach project at Abujar Gold Project and expanded exploration drilling with its growing fleet of eight diamond rigs.
The company has entered into a binding placement agreement with Chijin International (HK) Limited, a subsidiary of Shanghai Stock Exchange listed Chifeng Jilong Gold Mining Co Ltd for the issue of 85 million new shares at a price of $0.58 per ordinary share.
The placement price represents an approximate 15% premium to the 20-day VWAP of Tietto’s shares as of September 7, 2022. Once the placement is complete, Chifeng Gold will, together with its associates, hold a 7.87% interest in TIE.
Pathway to gold production
Not only does the placement bring to the registry a significant shareholder, it also widens the pathway to first gold production at Tietto’s Abujar Gold Project in Côte d’Ivoire.
Just a month ago, the company said it was on track to deliver the 3.45-million-ounce Abujar Gold Project on schedule and to budget, with first gold pour on track for the end of the year.
“I would like to welcome Chifeng Gold to Tietto’s share register via this substantial placement, and also thank them for their confidence and support of the company and its team,” Tietto managing director Dr Caigen Wang said.
“Most significantly, this placement means Tietto is secure in its pathway to first gold production at the Abujar Gold Project as we look forward to delivering the updated LOM production plan in Q3 CY22.”
President and chairman of Chifeng Gold Jianhua Wang said: “We are delighted to become a substantial shareholder of Tietto and, through this strategic investment, contribute to the development of the Abujar Gold Project.
"We fully recognise and appreciate the ability of the company's management and are looking forward to the commencement of production at the mine as planned.
“Chifeng Gold is committed to becoming a globally accepted and recognised sustainable major gold producer. West Africa is a strategic region for Chifeng Gold as we grow responsibly.
"The strategic investment into Tietto is in line with and driven by Chifeng Gold’s investment thesis. We look to further strengthening our relationship with Tietto in the future, working hand in hand to thrive in the gold industry in West Africa and beyond.”
Tietto has granted Chifeng Gold the right to appoint a non-executive director to the board within 90-days of completion of the placement.
About Chifeng Gold
Chifeng Jilong Gold Mining Co., Ltd is a China-based company with interests in gold production and sales. Its main gold product comes from gold mines in China, Laos and Ghana.
The company is chaired by highly regarded gold mining business veteran Jianhua Wang who was previously chairman of Shandong Gold and president of Zijin Mining prior to taking the Chifeng Gold reins.