Tolu Minerals Ltd (ASX:TOK) has raised $26.7 million via a placement to sophisticated and institutional investors to accelerate exploration and development at the Tolukuma Gold Mine in Papua New Guinea.
The placement will see Tolu issue approximately 33.4 million new shares at an issue price of A$0.80 per share with proceeds to accelerate exploration across the Tolukuma Gold Project and for redevelopment of the Tolukuma Gold Mine, including study work, mine development and dewatering.
Tolu Minerals managing director and CEO Iain Macpherson said: This successful capital raising is a very pleasing outcome.
“In particular, it confirms that Tolu’s strategy of leveraging the existing infrastructure of the historical Tolukuma Gold Mine to grow and develop a very substantial mineral resource and at the same time return Tolukuma to high-grade gold production, resonates with our shareholders and the market.
“I am also delighted with the ongoing support of a number of leading global institutional gold funds and existing shareholders.
“This placement enables Tolu to further accelerate both regional and near mine exploration as well as to continue the rapid refurbishment of the mine back into near term high-grade gold and silver production.”
Airborne survey ongoing
“The ongoing airborne survey is proving to be an invaluable tool in targeting future exploration and has already highlighted a number of near-mine epithermal targets as well as several regional targets.
“As was the case for the recent K92 airborne survey undertaken by the same providers, the survey is proving adept at identifying structures and mineralised zones, including both epithermal and porphyry style mineralisation, to depths in excess of 1,000 metres below surface.
“The survey will be continued over the coming weeks and I look forward to updating the market later this year with the outcomes of this work as well as providing a general update on progress.
“This survey work was instrumental in the value creation path of fellow PNG gold company K92, which we aim to emulate."