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- Titan Minerals (TTM) successfully taps investors for $18 million to help fund exploration work at its South American projects
- The company raises the funds through a share placement, with new shares valued at 10 cents a pop
- The cash injection will help fund drilling work at Titan’s flagship Dynasty project in Ecuador and other exploration work at neighbouring projects
- Titan says it plans to deliver a mineral resource for the Dynasty project before the end of 2021
- Shares in Titan Minerals close 15 per cent higher at 12 cents each this afternoon
Gold explorer Titan Minerals (TTM) has successfully tapped investors for $18 million to help fund exploration work at its South American projects.
The company raised the funds through a share placement, with new shares valued at 10 cents a pop.
Titan shares traded on the market at this same price for four days before the cap raise was announced, though the placement price represents a slim 2.9 per cent discount to the company’s 10-day volume-weighted average price before the placement was launched.
The new funds will go towards drilling work at the company’s flagship Dynasty project in Ecuador, with plans to deliver a mineral resource for the project before the end of 2021.
The cash injection will also fund other field and exploration work at the neighbouring Copper Duke and Linderos projects.
Titan CEO Laurie Marsland said recent leadership changes in the business attracted the attention of new investors, both locally and internationally.
“The recent raise has attracted a number of new institutional sophisticated natural resource funds that are as excited by the potential at Dynasty and Titan’s portfolio as we are,” Mr Marsland said.
“We look forward to delivering a JORC resource at Dynasty in quarter four 2021 before unlocking its true size and scale and continuing our systematic exploration campaigns at Linderos and Copper Duke.”
Titan’s recently-appointed Chairman, Peter Cook, said he was excited by the potential size and scale of the company’s assets.
“We believe we have a portfolio of very exciting projects in Ecuador and are confident the funds raised will enable further exploration that will result in these projects quickly emerging as substantial assets,” Mr Cook said.
Mr Cook was appointed Chairman of Titan in late August.
Titan said following the placement, it would have $18 million in cash on hand with another US$7.5 million (A$10.3 million) set to hit its books in staged payments from the April sale of its Zaruma assets.
Debt conversion
Alongside the capital raise, Titan is set to issue another $2.2 million worth of shares to directors through savvy debt conversion.
Titan said certain debtholders, including Director Matt Carr, have agreed to convert just over $3 million worth of debt into equity, meaning almost 35 million new shares will be issued on top of the placement shares.
Mr Carr’s portion of this debt conversation translates to just under $704,000 worth of shares.
What’s more, the company said 13.15 million of these new shares will be sold on-market to two other board members: $315,000 to Director Nick Rowley and $1 million to Mr Cook.
Mr Rowley will also subscribe for an extra $185,000 worth of shares on top of the placement, subject to shareholder approval.
Shares in Titan Minerals closed 15 per cent higher at 12 cents each this afternoon. The company has a $133.5 million market cap.
