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- Theta Gold Mines (TGM) raises $1.7 million through a private placement to fund its TGME gold project in South Africa
- The company will issue up to roughly 24.3 million shares at seven cents each to professional and sophisticated investors
- In addition, Theta Gold hopes to raise a further $1.5 million through a share purchase plan, allowing eligible shareholders to apply for up to $30,000 worth of shares
- The capital raise follows Theta Gold securing a US$70 million (A$110 million at the time) term sheet for the TGME project
- Company shares are down 6.33 per cent to trade at 7.4 cents at 1:34 pm AEDT
Theta Gold Mines (TGM) has raised $1.7 million through a private placement.
The company will issue up to around 24.3 million shares at seven cents each to professional and sophisticated investors.
Theta Gold plans to use the money for preliminary development and planning activities for its TGME gold project in South Africa. The money will also go towards gaining permitting approvals for the project as well as general working capital, corporate costs and repayments.
The capital raise follows Theta Gold securing a US$70 million (A$110 million at the time) term sheet with Sprott Streaming and Royalty for the TGME gold project.
TGM Chair Bill Guy said recent achievements are allowing the company to move towards becoming a gold producer.
“Both the signing of the A$110 million Sprott Term Sheet for stream funding and the completion of the definitive feasibility study for the TGME Underground Gold Mine marks significant achievements for the company and allows us to move forward providing a clear road map for Theta Gold to transition into an operational, mid-tier gold producer,” he said.
The company expects the placement shares will be issued on November 3.
In addition, Theta Gold Mines hopes to raise an additional $1.5 million through a share purchase plan with these funds also going towards the TGME project.
Eligible shareholders may apply for up to $30,000 worth of shares at the same price as the placement.
Company shares were down 6.33 per cent to trade at 7.4 cents at 1:34 pm AEDT.
