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  • Theta Gold Mines (TGM) has called a trading halt until after the weekend as it gets ready to tap investors for a fresh funding boost
  • The company announced the capital raise today but is yet to confirm how much it plans to raise and for what it will use the funds
  • The trading halt will last until Monday, March 15, unless Theta releases the details of the raise before then
  • Theta had US$888,000 (around A$1.15 million) in available funds at the end of 2020, which is less than one financial quarter at December quarter spending levels
  • But with the company's flagship Theta Project ready for development pending permitting approval and finance, it's likely the upcoming capital raise will pave the way for the next step in Theta's South African mining strategy
  • Shares in Theta Gold Mines last traded for 35 cents each on Monday, March 8

Theta Gold Mines (TGM) has called a trading halt until after the weekend as it gets ready to tap investors for a fresh funding boost.

The company announced the capital raise today, but Theta has not yet revealed any details of the raise. As such, it's not confirmed how much Theta plans to raise and for what it plans to use the funds.

The trading halt will last until Monday, March 15, unless Theta releases the details of the raise before then.

The gold mine developer's core focus is to rebuild and restart some crucial mines in the historic East Transvaal Goldfields region in South Africa's Witwatersrand Basin.

This area is where gold mining first began in South Africa over a century ago, and it was from this gold hotspot that South Africa quickly grew to become the world's biggest gold producer in the 1900s.

However, several mines across the region were abandoned early in their production process because, at the time, gold was so abundant it was more efficient to look for easy mines than to invest time and resources into building up difficult ones.

With today's vastly improved mining tech, however, Theta hopes to return to these prolific mines with easier extraction processes and reawaken mining in the Witwatersrand region.

Taking a look at Theta's latest quarterly report, the gold miner spent over US$1.1 million (around A$1.4 million) on exploration and other operating activities over the December quarter of 2021.

With no cash inflows for the quarter, this expenditure took the company's cash position to US$388,000 (around A$500,000) at the end of December.

Theta also had only US$500,000 (around A$645,600) in undrawn financing facilities, meaning the company had a total of US$888,000 (around A$1.15 million) in available funds at the end of 2020 — less than one financial quarter at current spending levels.

As such, with Theta's flagship Theta Project ready for development pending permitting approval and financing, it's likely the company's upcoming capital raise will pave the way for the next step forward in its South African mining plan.

Shares in Theta Gold Mines last traded for 35 cents each on Monday, March 8.

TGM by the numbers
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