Theta Gold Mines (ASX:TGM) announced this morning a capital raise of US$18.6 million ($27 million) via a placement and exercise of unlisted options.
The fully paid ordinary shares were issued at $0.18 each. Hong Kong firm Chengtun Gold strongly supported the raise, contributing US$10 million alone.
Theta also recently raised capital via the bond market, pricing a US$90 million senior secured callable bond issue.
Combined with today’s announced equity raise, Theta can progress the next phase of its Transvaal Gold Mining Estates (TGME) Project in South Africa. It’s expected to be in production in 2027.
The Feasibility Study says the project life is currently 13.1 years. Payback should be 18 months after the commencement of mining.
Theta Chairman Bill Guy told the market this morning:
“We are pleased to have satisfied the final equity funding condition precedent to the US$90 million bond drawdown, and we welcome our new shareholders, who share our vision of building a sustainable, long-term gold producer at the TGME Project in South Africa.
“This final equity component, combined with our conditional US$90 million bond issue, completes the funding requirements for construction of the processing plant and substantially de-risks the total funding required to advance the project to production in 2027.”
Write to Callum Newman at Mining.com.au
Images: Theta Gold Mines
