TG Metals (ASX:TG6) has secured firm commitments to raise $2.5 million through a placement to advance its Van Uden Gold Project and Lake Johnston Lithium Project in Western Australia.
The company will issue 15.625 million new shares at $0.16 each to institutional and sophisticated investors, with participation from directors and management.
Placement proceeds will fund expansion drilling at Van Uden to grow the existing mineral resource estimate, which contains 270,800 ounces of gold (Au). The company plans to focus initially on laterite gold targets within the 1.053-million-tonne laterite portion of the resource, which grades 0.52 grams per tonne Au.
TG Metals will complete a Scoping Study for a potential heap leach gold processing operation at Van Uden, targeting the surface laterite mineralisation. The project sits on the Forrestania Greenstone Belt, 90km east-northeast of Hyden.
Funding will also advance direct shipping ore (DSO) opportunities at the Lake Johnston Lithium Project, which hosts the ‘high-grade’ Burmeister lithium deposit. The company aims to evaluate a low-capital pathway to potential production.
Chairperson Richard Bevan says the placement reflects ‘strong’ investor support for the company’s development strategy.
“The capital raised will enable us to achieve key development milestones, the expansion of the Van Uden laterite gold resource to support our Scoping Study for an on-site heap leach development, and advancing DSO opportunities at our Lake Johnston Lithium Project,” Bevan adds.
“These initiatives are designed to unlock near-term value while maintaining a disciplined, low-capital approach to project development.”
Settlement of the placement is expected on 7 August. The company will issue 14.968 million shares under its existing placement capacity. This includes an additional 656,250 director participation shares subject to shareholder approval.
The company has also agreed to issue 3 million options to the lead manager with an exercise price of $0.24 each and a three-year expiry, subject to shareholder approval. A general meeting for these approvals is expected in late September.
TG Metals is a Perth-based dual-commodity explorer and developer focused on advancing its lithium and gold projects in Western Australia’s Forrestania and Lake Johnston greenstone belts.
Write to JC Villarba at Mining.com.au
Images: TG Metals
