Taruga Minerals Ltd (ASX:TAR) has secured firm commitments to raise up to $3.5 million in a strongly supported placement of 125 million fully paid ordinary shares at $0.028 per share.
The placement is supported by the directors of the company, who have committed to subscribe for a total of $225,000 in the placement.
Encouragingly, there has been strong participation from domestic institutional investors, along with new and existing sophisticated investors.
Funds raised to be used for:
- maiden JORC REE resource at Morgans Creek;
- regional REE exploration;
- copper exploration; and
- general working capital and costs of the offer.
“Growth trajectory”
Taruga CEO Thomas Line said: “This is a fantastic outcome for the company, and we are now well equipped to continue on our growth trajectory into the foreseeable future, by strategically developing our South Australian rare earth element and copper assets.
“We warmly welcome new domestic institutional investors and new sophisticated investors to the register.
“It was also fantastic to see strong participation from existing sophisticated investors, along with the Targua board of directors who have subscribed for a total of $225,000 worth of Taruga shares in the placement.”
Placement summary
Bell Potter Securities Ltd acted as the lead manager for the placement.
$3.275 million of the placement is being made to unrelated parties without shareholder approval and using the company’s placement capacities under listing rules 7.1 and 7.1A, and is expected to be finalised on or about November 10, 2022.
Subject to shareholder approval, the directors of the company (or their nominees) will apply for up to $225,000 worth of shares on the same terms as the placement.