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- West African gold explorer and developer Tietto Minerals (TIE) raises $130 million to accelerate the development of its Abujar Gold Project in the Ivory Coast
- The company will issue around 260 million new shares at 50 cents each, representing a 14.5 per cent discount to the last close price
- Tietto will use the funds and existing cash balances to develop Abujar and continue project exploration for gold resource growth
- The company is aiming for first gold production by the fourth quarter of CY22 and to produce 260,000 ounces of gold in 2023
- TIE shares are down 9.40 per cent, trading at 53 cents
Tietto Minerals (TIE) has received firm commitments for a two-tranche placement to raise $130 million to accelerate the development of its Abujar Gold Project in the Ivory Coast.
The company will issue around 260 million new shares at 50 cents each, representing a 14.5 per cent discount to the last close price.
Tietto will use the funds and existing cash balances to develop Abujar and continue project exploration for gold resource growth. The company is aiming for first gold production by the fourth quarter of CY22 and to produce 260,000 ounces of gold in 2023.
“Abujar is an exciting and robust gold project expected to deliver life of mine revenue of more than US$3.2 billion (A$4.26 billion), and has expanding exploration upside and strong potential for resource expansion, with an aggressive drilling program underway,” Managing Director Dr Caigen Wang said.
“We have expended US$41 million on Abujar development to end February 2022, with the remaining US$155 million estimated capex to gold production, firm or tendered. “
“Tietto has an experienced team on board to deliver the project on time and on budget and we look forward to achieving first gold later this year.”
Settlement of the first tranche of the placement is expected to take place on or around April 4, with allotment on or around April 5.
The second tranche of the placement is expected to settle on or around May 20, with allotment on or around May 23.
The placement replaces the mandate for a project development facility of up to US$140
million of debt funding for Abujar.
TIE shares were down 9.40 per cent, trading at 53 cents as of 12:32 pm AEDT.
