Theta Gold Mines (ASX:TGM) has entered a non-binding funding agreement to obtain US$80 million ($120.51 million) from Nebari Partners to be used for plant construction and first gold pour at the TGME Gold Mine Project in South Africa.
Funding will be deployed in two tranches, offering US$45 million after the completion of due diligence and the execution of definitive documents. Up to US$35 million will be issued from three months after closing and available for two years.
The funding scheme offers a three-month secured overnight financing rate with a floor of 3.75% in addition to another 10% per annum, including an original issue discount of 3% on each tranche, for a full term of 60 months.
The term sheet considers the issue of Theta warrants, valuing 27% of the funded amount and exercisable at a 40% premium to the 20-day volume weighted average price. Warrants will expire after four years.
The non-binding agreement with Nebari for US$80 million, together with an additional US$50 million in equity already raised, mean that the project is now fully funded.
In addition to the company’s recent focus on funding, Theta has completed the front-end engineering design (FEED) study, and construction is now underway with all engineering equipment acquired, as previously reported by Mining.com.au.
Nebari Senior Managing Director Roderik Van Losenoord says the company is grateful to provide funding that will assist the construction and ramp-up of “South Africa’s next major gold mine”.
“While further due diligence is still required, we look forward to working collaboratively with Theta Gold’s impressive team and take on a role as both financier and supportive partner,” Van Losenoord says.
Theta Chairman Bill Guy describes the financing terms as another milestone that will allow the company to achieve its first gold pour at the project in Q1 2027.
“It also provides a huge vote of confidence to the TGME Gold Mine Project and management involved at all levels,” Guy says.
“We see the partnership with Nebari, and the flexible funding options that allows for co-lending scenarios, as great options for the company.
“Fully-funded is a term not used lightly, as it allows the company to complete the transition from construction to production at a time when we have seen spot-gold prices above US$4,000 ounces.”
At time of publishing, Trading Economics marked the gold price at US$4,307.01 per ounce, representing an 64.10% increase for this year to date.
Located in South Africa’s Eastern Transvaal goldfields, the TGME Gold Project benefits from its prime location, with close proximity to Johannesburg, and the region’s existing infrastructure.
The area has existing roads and power lines in place which will accelerate the development timelines while reducing overall costs.
Theta Gold Mines is developing projects in South Africa’s Eastern Transvaal goldfields, with a focus on the flagship TGME Gold Project. The company has a further pipeline of 40 historic mines for future expansion and additional exploration targets in the area to extend the mine life of the project.
Write to Maddison Elliott at Mining.com.au
Images: Theta Gold Mines



