Theta Gold Mines Ltd (ASX:TGM) is raising A$2.3 million in funding to advance the TGME Underground Gold Mine Project in South Africa via a private share placement to existing shareholders and institutional, professional and sophisticated investors.
Having received firm commitments for the placement, the company will issue more than 35 million new fully paid TGM ordinary shares at an issue price of A$0.065 using its existing placement capacity.
The funds will be used to support project expenditure, including preliminary development and planning activities for TGME, as well as permitting approvals, general working capital, corporate overheads and bond interest and loan repayments.
“Significant achievement”
“The recent completion of the definitive feasibility study (DFS) for the TGME Underground Gold Mine marks a significant achievement for the company and allows us to move forward providing a clear road map for Theta to transition into an operational, mid-tier gold producer in South Africa,” Theta Gold Mines chair Bill Guy said.
“The company and its debt advisors are busy preparing the TGME Project Information Memorandum and banking model to discuss potential funding solutions with numerous potential project financiers in the coming weeks and expects to receive funding term-sheet during this quarter.”
The stockbrokers for the placement were Shaw and Partner Ltd and Private Wealth Pty Ltd.
Theta Gold Mines is a gold development company with a range of prospective gold assets in a South African gold mining region.
Theta Gold’s core project – the Transvaal Gold Mining Estates (TGME) Underground Gold Mine Project – is 370 kilometres northeast of Johannesburg by road.
Following small-scale production from 2011-2015, the company is focused on the construction of a new gold processing plant within its approved footprint at the TGME plant, and for the processing of the Theta Open Pit oxide gold ore.