Join our daily newsletter At The Bell to receive exclusive market insights
- Junior miner Torian Resources (TNR) has raised a neat $4 million through a share placement to fund drilling at its core Mt Stirling Gold Project in WA
- The company placed just under 73 million shares at 5.5 cents each to raise the funds, representing a 5.17 per cent discount to Torian’s last closing price
- As part of the placement, investors will be given one attaching option for every three shares bought, exercisable at two cents each before February 7, 2022
- The placement was heavily oversubscribed, with $7.5 million worth of bids received, but Torian says it wanted to minimise dilution as much as possible
- Still, two company directors have opted to subscribe for $50,000 worth of shares as part of the placement, subject to shareholder approval
- Torian said it has outlined several priority targets at the Mt Stirling project, which will be drill-tested in a planned upcoming drilling program
- The $4 million raised will help Torian take on some major drill work across its Mt Stirling project until the option conversion date in 2022
- Shares in Torian Resources are down 3.45 per cent this afternoon to 5.6 cents each
Junior miner Torian Resources (TNR) has raised a neat $4 million through a share placement to fund drilling at its core Mt Stirling Gold Project in WA.
The company flagged the capital raise when it called a trading halt on Monday, March 22, though, at the time, no further details about the raise had been revealed.
Today, Torian said it placed just under 73 million shares at 5.5 cents each to raise the $4 million. This price represents a 5.17 per cent discount to the company’s last closing price of 5.8 cents.
As part of the placement, investors will be given one attaching option for every three shares bought, exercisable at two cents each before February 7, 2022.
Torian said the placement was made to local and international sophisticated investors, with Executive Directors Petetz Schapiro and Paul Summers committing to subscribe for $50,000 worth of shares as part of the placement, subject to shareholder approval.
The placement was heavily oversubscribed, with $7.5 million worth of bids received as part of the fundraising plan.
Nevertheless, Peretz Schapiro said despite the strong demand, company management decided to minimise dilution as much as possible while still raising enough funds to comfortably see Torian through to the option conversion date in February 2022.
“This will allow us to plan and fund an extensive AV, RC, and diamond drilling campaign for the remainder of 2021 and beyond,” Peretz said.
Major Mt Stirling drilling
Torian said it has outlined several priority targets at the Mt Stirling project to be drill-tested in the planned upcoming drilling program.
These targets fall along the Viserion Shear, Wonambi Shear, Ursus Fault, and Blue Jacket structural corridors.
Torian will first test some conceptual, geochemical, and structural targets over the next few months to extend and confirm several regional targets, all the while preparing programs of works (POWs) for the Mt Stirling priority targets.
The company then plans to kick off a 35-hole reverse circulation (RC) second-phase extension drilling program in the area.
“This extensive program will not only help us continue growing our Mt Stirling resource estimate through extensional and infill drilling, but it will also fund further drilling at the Stirling Well resource, systematically explore more than 50 high priority targets on the Stirling Block, and allow for extensive follow up drilling throughout our prospective Diorite Block,” Peretz said.
“The Mt Stirling gold system now extends over approximately 800 metres of strike and with each batch of results received, it becomes clearer and clearer to us that we may be sitting on something quite substantial,” he said.
He added that the company is expecting “strong and active growth” news flow for the foreseeable future as its drilling programs continue to progress.
Today’s cap raise comes as Torian’s joint venture (JV) partner, Zuleika Gold (ZAG), revealed some strong gold hits from aircore drilling at the Paradigm East prospect in WA.
At midday AEDT, shares in Torian Resources are down 3.45 per cent to near the share placement price at 5.6 cents each. The company has a $42.5 million market cap.
