Theta Gold Mines Raises A Further US$4M For TGME Gold Project

Theta Gold Mines Ltd (ASX:TGM) has secured firm commitments from existing and new sophisticated and wholesale investors to raise a further US$4 million.

The private placement of shares is on the same terms as the two-tranche US$10 million placement announced in May.

Watch: Theta Gold Mines Chairman Bill Guy Updates JustStocks Video on Gold Development Activities And $15 Million Capital Raise

The shares will be issued at A$0.133 each along with one free option for every two new shares subscribed for.

Advancing TGME Gold Project

Theta Gold Chairman Bill Guy said: “The additional commitment of equity funding will support the Company to further advance its TGME Gold Project in South Africa.

“It’s pleasing to receive the continued support from our existing long-term investors in the Company as we advance our gold asset to development stage”.

1.24 million ounces gold

The TGME Gold Project is next to the historical gold mining town of Pilgrim’s Rest in South Africa.

Following small-scale production from 2011 to 2015, the company is currently focused on the construction and financing of a new gold processing plant.

Theta Gold has estimated a 12.9-year mining operation delivering production of 1.24 million ounces of contained gold.

The project is forecast to generate a pre-tax net present value of US$324 million at a gold price averaging USD1,642/oz over the life of mine.

Use of funds

The funds raised from the share placement are planned to be used as follows:

  • Complete funding packages for TGME Gold Project capital expenditures;
  • Complete required work in order to finalise the EPC contract for the construction of plant, TSF (tailing storage facilities) and waste water management systems including completion of construction tenders;
  • Development works for plant and TSF, and water management for TGME gold project;
  • Strengthen the company’s Balance Sheet and provide momentum to progress advancement of project activities;
  • Bond and loan interest repayments; and
  • General working capital.



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