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Tanga Resources (ASX:TRL) to raise $7M, appoints new Non-Executive Chairman
Source: MiningNews
  • Tanga Resources (TRL) has received binding commitments to undertake a $7 million placement
  • All up, 233.3 million shares will be issued to sophisticated and professional investors at three cents
  • Tanga will use the money to undertake exploration at its recently acquired joint venture in Côte d'Ivoire and continue work at the Damara Project in Namibia
  • As well as the placement, Tanga has appointed Andrew Pardey as Non-Executive Chairman
  • Andrew's career spans more than 30 years in the mining industry having experience in exploration, project development, construction, and operations
  • Tanga has ended the day with no change and shares trading for 3.7 cents

Tanga Resources (TRL) has received binding commitments to undertake a $7 million placement.

All up, 233.3 million shares will be issued to sophisticated and professional investors at three cents.

This price represents an 18.9 per cent discount to Tanga's close of 3.7 cents on September 23, and an 18.8 per cent discount to the 15-day volume-weighted average price of 3.69 cents.

The placement will be undertaken in two phases with phase one issuing 34.2 million shares to raise $1.03 million. Shares under this phase are expected to settle on or around October 5.

Phase two, which is subject to shareholder approval, will issue 199.1 million shares to raise $5.97 million.

Further, Directors subscribed for 2.2 million shares, however, this is also subject to shareholder approval.

Tanga will use the money to undertake exploration at its recently acquired joint venture in Côte d'Ivoire, continue work at the Damara Project in Namibia, and for general working capital.

As well as the placement, Tanga has appointed Andrew Pardey as Non-Executive Chairman.

He will be replacing Nigel Lafferty who has stepped down.

Andrew's career spans more than 30 years in the mining industry having experience in exploration, project development, construction, and operations.

He has worked in Australia and Africa with major gold companies such as Ashanti Goldfields which is now known as AngloGold Ashanti.

Between February 2015 and December 2019 Andrew was CEO of Centamin Plc, and prior to this he worked at Sukari where he was both Chief Operating Officer and General Manager of Operations.

"The strong demand from a range of new and existing investors reflects the level of interest in the company's recently acquired land packages in Côte d'Ivoire and allows Tanga to be able to proceed forward with the strategy of responsible, systematic exploration unlocking value across the portfolio for all of our stakeholders," Andrew said.

Tanga has ended the day with no change and shares trading for 3.7 cents in a $5.059 million market cap.


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