Join our daily newsletter At The Bell to receive exclusive market insights
- Junior explorer Tanga Resources (TRL) has successfully tapped investors for $650,000 to keep up some Namibian exploration work
- The new funds will be used to fund more exploration work at the Katerina Gold Project
- Tanga recently revealed some important gold targets in the project area, which it now plans to explore
- The new funds will be raised by placing roughly 43 million new shares at 1.5 cents each
- This dilutes Tanga’s total share issue by roughly 46 per cent
- Shares in Tanga are yet to open from a trading halt today but lasted traded for 1.9 cents each
Junior explorer Tanga Resources (TRL) has successfully tapped investors for $650,000 to keep up some Namibian exploration work.
The company recently revealed some major new gold targets at the Katerina Gold Project in Namibia. Today, Tanga said its bolstered cash position means it can keep exploring the project area.
Tanga said it has received commitments to place 43.3 million new shares at 1.5 cents each to raise the full $650,000. According to the company, this brings its total cash position to $1 million.
The 1.5-cent price tag is a discount of roughly 21 per cent to the company’s last closing price.
Tanga CEO Matthew Bowles thanked existing shareholders for their support today and welcomed new investors under the placement.
“The strong support for the placement allows us to continue our gold exploration activities at the Katerina Gold Project and is an endorsement of our strategy of focussing on the exploration potential in Damara Belt,” Matthew said.
The placement is set to be completed in two tranches. The first trance will place 23.33 million new shares to raise $350,000 and is not subject to shareholder approval as per ASX listing rules.
The remaining $300,000 will be raised in the second tranche but only subject to shareholder approval.
Given TRL has a total share issue of 93.4 million, today’s placement dilutes company shares by roughly 46 per cent.
The funds raised will be used for soil sampling, ground magnetics and targeting, and general working capital at Katerina.
Shares in Tanga are yet to open from a trading halt, so it is not sure yet how shareholders will react to today’s capital raise. Company shares last traded for 1.9 cents each in a $1.77 million market cap.
