Theta Gold Mines (ASX:TGM) has secured further equity and debt funding totalling US$33.9 million ($51.22 million) to progress construction at the TGME Gold Mine Project in South Africa.
A placement, raising US$7.9 million, will be conducted to professional and sophisticated investors at an issue price of $0.21 per share. Bell Potter Securities and CLSA Australia will act as joint lead managers.
Meanwhile, a two-tranche private placement, raising US$15 million, will also be conducted at an issue price of $0.155 per share. NC New Energy has entered into a binding commitment with Theta to participate US$1 million under the equity raise, subject to shareholder approval.
The debt component, comprising US$10 million, is from the private cornerstone investors under a loan facility. The facility will be on similar terms to the US$35 million loan from the Industrial Development Corporation (IDC).
Under the loan, the duration must be no less than two years and has an interest rate above 10% per year and less than the IDC annual interest rate charges of 13.5%.
Definitive finance agreements with lenders and IDC are to be formalised and entered into before the end of Q1 2026. Drawdown will be made available from 1 April 2026.
In conjunction, Theta intends to conduct a share purchase plan, in which eligible shareholders can contribute to raise up to US$1.3 million.
Funds will be used for numerous construction activities including earthworks and civil construction for the plant, alongside tailings storage facility and water management. The funds will also be used for plant equipment orders and purchase, as well as structural, mechanical, piping and platework installation.
Theta says the funds will strengthen the company’s balance sheet and provide momentum to progress advancement of project activities and general working capital.
Executive Director Richie Yang says this funding package and equity raising is a “major vote of confidence” from the investment community.
“The stakes are high, our morale is high and most importantly, the gold price is strong; it’s time to build a mine to last for generations to come,” Yang says.
As Mining.com.au reported, the gold price is hovering near the US$3,970 per ounce mark, coming even closer to the US$4,000 beachhead.
Gold sat at US$3,969.5 per ounce as of 2pm AEDT today. Over the past month, gold’s price has gained 9.05% and is up 51.21% compared to the same time last year.
Theta Gold Mines is a gold developer focused on a range of prospective gold assets in South African mining regions.
Write to Aaliyah Rogan at Mining.com.au
Images: Theta Gold Mines
