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- Tesoro Resources (TSO) is set to raise up to $5.98 million to fund an exploration and development program at its flagship El Zorro Project in Chile
- This will include a placement to sophisticated and institutional investors for up to $3.26 million, as well as an entitlement offer for up to $2.72 million
- PAC Partners Securities has been appointed as lead manager for both the placement and entitlement offer, and will receive a six per cent capital raising fee
- The proceeds will be used to fund infill and extensional drilling, a metallurgical testwork program and a scoping study scheduled for early next year
- Tesoro Resources shares are grey at market close, last trading for 6.9 cents each
Tesoro Resources (TSO) is set to raise up to $5.98 million to fund an exploration and development program at its flagship El Zorro Project in Chile.
The capital raising will include two components: a placement to institutional and sophisticated investors for up to $3.26 million, and a non-renounceable entitlement offer for up to $2.72 million.
At a raising price of six cents per share, this represents a 13 per cent discount in comparison to Tesoro’s last closing price on June 11, 2020, of 6.9 cents per share.
Under the terms of the placement to institutional investors, the company plans to issue up to 54,401,008 new shares, the settlement of which is anticipated to close on June 19, 2020. Participants in this component will not be eligible to take part in the entitlement offer unless they are existing eligible shareholders of the company.
PAC Partners Securities has been appointed as lead manager for both the placement and entitlement offer. As consideration for their services, PAC will be issued a six per cent capital raising fee, consisting of a two per cent management fee and a four per cent selling fee.
Zeff Reeves, Managing Director of Tesoro Resources, said the company has had significant exploration success at the El Zorro Gold Project since it was re-quoted on ASX in February.
“We are pleased to have the support of existing and new shareholders for the next phase of development,” Zeff noted.
“Infill and extensional drilling at the El Zorro Project will commence in the coming weeks and we look forward to keeping our shareholders updated on our progress at the exciting El Zorro Gold Project,” he added.
The exploration and development program is expected to include an infill and extensional drill program of between 4,000 and 5,000 metres, scheduled to begin in July this year, as well as an exploration and resource estimation.
It will also include an in-depth metallurgical testwork program and a scoping study, which has been planned for early 2021.
Tesoro Resources shares are grey at market close, last trading for 6.9 cents each.
