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  • Australian gold producer Tombola Gold (TBA) raises $10.5 million via a strongly supported placement
  • The funds were raised through the issue of 175 million shares to institutional and sophisticated investors at six cents
  • This placement means Tombola is fully funded to begin initial gold production at its Mt Freda Gold Mine which is scheduled to start in the third quarter of CY22
  • The remaining funds will be used to progress copper, gold and cobalt exploration activities in Cloncurry and begin a drill program at its South Australian copper projects
  • Tombola is down 7.69 per cent with shares trading at 6 cents per share

Australian gold producer Tombola Gold (TBA) has raised $10.5 million via a strongly supported placement.

The funds were raised through the issue of 175 million shares to institutional and sophisticated investors at six cents.

This price represented a 7.7 per cent discount to Tombola’s last close of 6.5 cents on May 9 and a five per cent premium to the 15-day volume-weighted average price.

Tombola led the raise and the brokers who assisted will be paid a six per cent cash fee.

This placement means Tombola is fully funded to begin initial gold production at its Mt Freda Gold Mine which is scheduled to start in Q3 CY22.

The remaining funds will be used to progress copper, gold and cobalt exploration activities in Cloncurry and begin a drill program at its South Australian copper projects.

“The placement means we are now fully financed into initial gold production at our flagship Mt Freda Gold Mine located in Cloncurry, Queensland,” Chairman and Managing Director Byron Miles said.

“Importantly, with substantial construction activities completed we expect to be producing gold on time in Q3 and making a successful transition from explorer to a meaningful Australian gold produce.”

“In addition to completing construction at Mt Freda, the funds raised will be used for further exploration in Cloncurry for copper, cobalt and gold and a modern drilling campaign at our prospective South Australian copper projects.”

Tombola was down 7.69 per cent with shares trading at 6 cents at 3:19 pm AEST.

TBA by the numbers
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