Theta Gold Mines (ASX:TGM) has completed an oversubscribed US$90 million ($125.29 million) senior secured bond issue to fund construction of its TGME Gold Mine Project in South Africa.
The binding bond issue attracted strong demand from international institutional investors following the completion of its revised Definitive Feasibility Study (DFS) in February 2026.
As previously reported by Mining.com.au, the study outlined 4.96 grams per tonne gold, an internal rate of return of 77%, and a payback period of 29 months.
The bond completes the company’s debt funding process and enables progression of remaining construction and development activities.
Construction is progressing on budget, with plant commissioning targeted for late 2026 and first gold pour expected in Q1 2027.
The company reports no principal repayment for 30 months, followed by US$7.5 million quarterly amortisation to maturity.
“The TGME Gold Mine project is a cornerstone development initiative for the region … This bond financing structure provides substantial operational flexibility and opens access to a deep global institutional capital base,” Theta Gold Mines Chairman Bill Guy says.
The bonds carry a 12.75% coupon rate with an issue price of 95.9% of nominal value. Settlement is expected around mid-June 2026 for a four-year tenor, with listing on Euronext Nordic ABM within nine months.
Net proceeds will fund construction, mine development, processing plant works, tailings and water management infrastructure, equipment procurement, and power infrastructure upgrades.
The company’s revised DFS outlines a life of mine of 13.1 years, with a net present value of $689 million and free cash flow of $1.4 billion.
Write to JC Villarba at Mining.com.au
Images: Theta Gold Mines
