- Tempus Resources (TMR) receives commitments from institutional investors to raise $6.28 million through a two-tranche placement
- All up, just under 25 million shares will be issued at an average price of 25.1 cents, a 1.6 per cent premium to the 15-day volume-weighted average price
- The funds will primarily be used to continue drilling at the Elizabeth Gold Project in Canada which has so far yielded exceptional grades of gold
- The remaining funds will support Tempus Ecuador projects and general working capital purposes
- Company shares are trading 1.96 per cent higher at 26 cents at 1:30 pm AEST
Tempus Resources (TMR) is set to raise $6.28 million to extend drilling at the Elizabeth Gold Project in Canada.
The company received firm commitments from institutional investors to raise $6.28 million through a two-tranche placement.
The first tranche of “Canadian flow-through shares” comprises 14 million shares to be issued at the Canadian Dollar equivalent of A28.35 cents to raise A$4 million.
These shares will qualify under Canada’s Income Tax Act which gives tax credits for investors in qualifying mining and exploration activities.
The second tranche will issue 10.99 million ordinary shares at 21 cents each to raise A$2.28 million.
All up, the placement will issue 24.99 million shares at an average price of 25.1 cents per share. This marks a 1.6 per cent premium to the 15-day volume-weighted average price of Tempus’ shares.
Funds from the ordinary tranche will be used to fund the company’s Ecuador projects and for general corporate purposes. The $4 million raised via the first tranche will support further drilling at its Canada-based project.
So far, Tempus has drilled 15 holes, for 4300 metres, at the Elizabeth Gold Project. All holes intersected quartz vein mineralisation between 0.5 and up to over six metres in thickness and results have already been received for four of the 15 holes.
Best assays include four metres at 31.2 grams of gold per tonne (g/t) from 122 metres, including 1.5 metres at 52.1g/t gold from 123 metres and 6.6 metres at 8.4g/t gold from 102.4 metres, in turn including 1.1 metres at 46.3g/t gold at 105.4 metres.
Company President and CEO Alexander Molyneux was pleased with the support shown for the placement.
“The funds raised position Tempus to complete the ongoing 12,000-metre drilling program at Elizabeth, develop the underground access for drilling extensions of the vein systems and to begin exploration on the potential satellite deposits identified by geophysical and geochemical studies,” he said.
The placement is expected to be completed by August 31 2021.
Company shares are trading 1.96 per cent higher at 26 cents at 1:30 pm AEST.