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A Drill rig at Australian project. Source: Thomson Resources
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  • Thomson Resources (TMZ) receives firm commitments from US-based institutional investors for a share placement to raise $4.83 million
  • Around 64.4 million shares will be issued at 7.5 cents and for every one new share applied for, investors will receive three options at 11.5 cents to be exercised within three years
  • Subsequent to the placement, Thomson will undertake a non-renounceable rights issue to existing eligible shareholders who may apply for up to one new option at 0.1 cents
  • The money is being used to complete mineral resource estimates and metallurgical studies for the New England Fold Belt projects as well as geophysical surveys and drilling
  • Company shares are down 6.52 per cent to trade at 8.6 cents at 1:42 pm AEDT

Thomson Resources (TMZ) has received firm commitments from US-based institutional investors for a share placement.

The placement will seek to raise $4.83 million through the issue of roughly 64.4 million shares at 7.5 cents each. The issue price represents an 18.5 per cent discount to the last closing price of 9.2 cents on October 18.

For every new share applied for, investors will receive three options which have an exercise price of 11.5 cents within a three-year period.

The placement is expected to settle by Wednesday, October 27.

Executive Chairman David Williams was pleased with the interest received from US investors.

“This coupled with recent meetings with investors in the US, UK, Europe and Asia has illustrated the strong interest in and appreciation of what Thomson has done and is delivering on in relation to the silver focused hub and spoke strategy; and the approach of creating a viable silver project in Australia through aggregating of quality silver projects and the use of a central processing hub,” Mr Williams said.

Once the placement is completed, Thomson will undertake a non-renounceable rights issue to existing eligible shareholders. Shareholders will be able to apply for up to one new option at a price of 0.1 cents.

Based on the number of shares that will be on issue after the placement, up to 138,281,342 new options will be issued under the rights issue.

Thomson Resources will use the money to complete mineral resource estimates and metallurgical studies for the New England Fold Belt projects (NEFB). The money will also support geophysical surveys and drilling at the NEFB and Lachlan Fold Belt and general working capital.

Company shares were down 6.52 per cent to trade at 8.6 cents at 1:42 pm AEDT.

TMZ by the numbers
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