Talga Gold (ASX: TLG) has secured the support of new and existing institutional investors to raise A$2.3 million to continue development of its Swedish graphite and iron ore projects.
The company had placed 6.95 million shares priced at A$0.325 each, a 19% discount to the closing price of its shares on July 17, to domestic and international institutional clients of lead manager Ord Minnett.
Proceeds from the A$2.3 million placement will be used primarily for resource upgrade drilling being performed on the Company’s Nunasvaara and Raitajärvi graphite projects and the Masugnsbyn iron ore project leading towards a preliminary (scoping) economic studies and marketing/offtake studies.
Development work
Talga Gold had earlier this month started first phase drilling to upgrade the JORC Inferred Resources at Nunasvaara and Raitajärvi as well as the Junosuando deposit at Masugnsbyn.
The initial program at Nunasvaara will comprise 20 diamond drill holes for totalling 1650 metres targeting five separate targets.
Nunasvaara has a JORC Inferred Resource of 3.6 million tonnes at 23% graphitic carbon that is open at depth and along strike.
Talga Gold is also waiting on historic drill core graphite characterisation and metallurgy work.
The company expects to have new resource estimates for Nunasvaara in the fourth quarter of this year, allowing it to start preliminary Scoping Studies.
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