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- Tombola Gold (TBA) enters a trading halt ahead of a proposed capital raise
- As announced earlier this month, TBA is getting closer to bringing its Mt Freda and Golden Mile projects into production
- However, whether the upcoming capital raise will support these projects isn’t yet certain
- Nevertheless, Tombola expects to release the details by no later than Wednesday, August 18, when it comes out of the trading halt
- Company shares last traded at 4.7 cents on Friday, August 13
Tombola Gold (TBA) has entered a trading halt ahead of a proposed capital raise.
At this stage, there aren’t any details on how much the company will raise or how it plans to use the money. All that has been disclosed is that the capital raise is being managed by CPS Capital Group.
Earlier this month, the company released an investor presentation which highlighted its near-term and longer-term plans.
Before the end of this year, Tombola is transitioning two of its Queensland-based projects into production. The company recently completed scoping studies for the Mt Freda and Golden Mile projects that outlined their potential to be viable gold mining and processing operations.
To cover development activities and exploration costs, Tombola spent $827,000 on operating activities during the June quarter, as well as $38,000 on investing activities.
At the end of the period, the company had $948,000 in cash and equivalents and an estimated 1.15 quarters left of available funding. When asked whether it plans to raise further capital, TBA stated it was reviewing its capital structure which may include loan funds, assets disposal or shareholder funding.
Tombola Gold expects to remain in the trading halt until no later than Wednesday, August 18.
The company last traded at 4.7 cents on Friday, August 13.
