Theta Gold Mines Ltd (ASX:TGM) (OTCMKTS:TGMGF) plans to use A$3.13 million raised in a placement to support the development of its starter open-pit gold projects in South Africa.
The company will issue 15,027,819 fully paid ordinary shares at A$0.275 per share with 11,391,455 of these forming a share placement to sophisticated and professional investors to raise $3,132,650 before costs.
Additionally, the company will issue 3,636,364 fully paid ordinary shares at A$0.275 per share as full settlement of the $1 million short-term loan advanced by a shareholder between December 2020 and January 2021.
Funds raised will be used for project expenditure (open-pit and underground), including permitting, underground mine pre-feasibility study, reserve conversion, tailings infrastructure, as well as working capital, business development and corporate expenses.
The shares are expected to be issued on Tuesday, March 23, 2021.
“Funding project development”
Theta chairman Bill Guy said: “The company has raised funds to support its project development work.
“In the short-term, the company will update the market with its maiden underground mining reserve and integrated mine strategy.
“The team in South Africa is completing the underground pre-feasibility study, focused on easily accessible underground indicated resources, to generate the first underground mining reserve.”
Aura Capital Pty Ltd and Spark Plus Pte Ltd acted as Joint Lead Managers for the placement.
Multi-pit strategy
The company aims to build a solid production platform to over 160,000 ounces per annum based primarily around shallow, open- pit or adit-entry shallow underground hard rock mining sources.
Theta Gold has access to over 43 historical mines and prospect areas that can be accessed and explored, with over 6.7 million ounces of historical production recorded.
Guy said: “The integrated mine strategy will outline a clear vision of how Theta Gold intends to bring on multiple mines online over the next four to five years, with the integration of those mines through a central processing plant and mine infrastructure.
“The team is concentrating on the bigger mines initially, out of the 43 historical mines available to be evaluated.”