Theta Gold Mines (ASX:TGM) has completed the first drawdown under its bond financing arrangement, receiving US$37 million ($51.3 million) from Nordic debt specialist Pareto Securities.
The company satisfied all pre-disbursement conditions precedent required for the bond financing originally announced in June.
The bond drawdown follows small-scale production at the TGME Gold Mine Project in South Africa between 2011 and 2015. According to Theta, this provides necessary capital to progress the development and construction of TGME.
Under the bond financing structure, Theta Gold can access up to US$90 million before fees and finance charges. The remaining balance then becomes available for progressive drawdowns to match project funding requirements, subject to satisfying customary conditions including project cost-to-complete tests.
Pareto Securities acted as sole bond manager for the secured bond issue. Argonaut Limited provided financial and debt advisory services, while Thomsons, Webber Wentzel, and Haavind delivered legal counsel across Australian, South African, and Norwegian jurisdictions, respectively.
The TGME Project sits in South Africa’s Eastern Transvaal goldfields, approximately 370km northeast of Johannesburg. The project holds a mineral resource of 6.1 million ounces of gold across near-surface and shallow underground ore bodies.
Theta’s revised Definitive Feasibility Study released in February showcases a 13.1-year mine life with a post-tax net present value of $689 million and free cash flow of $1.4 billion at an average gold price of US$2,884 per ounce.
The company holds 100% of Theta Gold SA, which owns 74% of TGME and Sabie Mines, meeting Black Economic Empowerment ownership standards under South African Mining Charter requirements.
Theta is now focused on constructing and financing a new gold processing plant to advance TGME towards commercial production.
Theta Gold Mines is a gold developer focused on its suite of projects in South Africa’s Eastern Transvaal goldfields.
Write to Paula Fabe at Mining.com.au
Images: Theta Gold Mines
