Tietto Minerals Ltd (ASX:TIE) has completed a $130 million two-tranche placement that will fully fund the construction of the 3.35-million-ounce Abujar Gold Project in Côte d’Ivoire with no debt.
The West African gold explorer received strong support from new and existing Australian and offshore institutional investors, as it looks to accelerate first production and development at Abujar in a flexible structure at significantly lower cost.
Abujar is now fully funded to first gold production, which is on track for the fourth quarter of 2022. Tietto plans to produce 260,000 ounces of gold in 2023.
Strong support for Abujar
“To address the board’s desire to continue with the rapid development of Abujar, we sought to align the company with like-minded investors, keen for the company to realise first gold production by Q4 CY22 and produce 260,000 ounces of gold in 2023,” Tietto managing director Dr Caigen Wang said.
“We are delighted with support for the placement and welcome several highly credentialled investors to our register.
"Abujar is an exciting and robust gold project expected to deliver life of mine revenue of more than US$3.2 billion and has expanding exploration upside and strong potential for resource expansion, with an aggressive drilling program underway.
“Tietto is excited to continue our journey to become a gold producer with a highly supportive register.
"We have expended US$41 million on Abujar development to end February 2022, with the remaining US$155 million estimated capex to gold production, firm or tendered.
"Tietto has an experienced team on board to deliver the project on time and on budget and we look forward to achieving first gold later this year.”
Placement details
Tietto has reaised the $130 million via the placement of approximately 260 million new fully paid ordinary shares at A$0.50 per share, representing a 14.5% discount to the last close price and a 14.6% discount to the 10-day volume weighted average price of the company’s shares to March 24, 2022.
New shares issued under the placement will rank equally with existing ordinary shares from the date of issue.
The company will issue 96,900,545 and 163,099,455 shares subject to shareholder approval at a general meeting to be held on or around May 13, 2022.
Settlement of the first tranche of the placement is expected to take place on or around April 4 and dispersed the following day. The second tranche will be subject to shareholder approval and is expected to settle on or around May 20, 2022, with allotment on or around May 23, 2022.
The placement replaces the mandate for a Project Development Facility of up to US$140 million of debt funding for Abujar.