Titan Minerals Ltd (ASX:TTM) is undertaking an accelerated non-renounceable entitlement offer to raise up to approximately $7.6 million at an offer price of $0.03 per new share.
The entitlement offer involves the issuance of new fully paid ordinary shares on the basis of one new share for every six existing shares held by investors.
Eligible shareholders will also receive one free attaching option for every new share issued, exercisable at $0.035 per option and expiring 12 months from the date of issue.
Funds raised from the offer will primarily be used to advance exploration activities at the company's Dynasty Gold Project in southern Ecuador.
Offer summary
The entitlement offer will comprise the issue of up to approximately 254,158,876 new shares at $0.03 per new share, which represents a:
- 9.1% discount to last traded price of shares of $0.033 on November 24, 2023;
- 7.9% discount to the theoretical ex-rights price (TERP)1 of $0.0326 per share;
- 4.7% discount to the 5-day volume weighted average price of shares up to and including November 24, 2023; and
- 6.0% discount to the 10-day volume weighted average price of shares up to and including November 24, 2023.
Canaccord Genuity (Australia) has been appointed as lead manager to the entitlement offer.
Directors Peter Cook, Barry Bourne and Matthew Carr have indicated their intention to participate in the offer, demonstrating their confidence in the company.
Bonus option
For every two attaching options subscribed for and issued, eligible shareholders will also receive, for nil consideration, one bonus option exercisable at $0.07 per option and expiring three years from the date of issue.
The bonus options are subject to a vesting condition that each option will only vest and become exercisable if the eligible shareholder exercises two attaching options on or before the expiry date of the attaching Options, being 12 months from the date of issue.
The company will not seek a quotation of the attached options or bonus options.
Use of funds
Titan intends to use the proceeds to be raised under the entitlement offer primarily to fund exploration activities, including to continue resource drilling at its Dynasty Gold Project.
The company will also attribute funds raised towards working capital as well as corporate and administrative expenses.