Minerals exploration company Traka Resources (ASX:TKL) reports it has entered an At-The-Market (ATM) subscription facility with Dolphin Corporate Investments to fund exploration activities at Mt Cattlin Gold-Copper Project in Western Australia.
This agreement will provide Traka with up to $3 million of standby equity capital over the next 3 years, as well as flexibility for timing and financing of exploration activities at the project. Traka notes it will also provide additional working capital.
Traka reports the agreement allows it to retain full control over the subscription placement process. The company also maintains sole discretion over a range of points including the choice to utilise the ATM, the number shares to be issued, the minimum issue price of the shares and the timing of each subscription.
Traka has no obligation to use the ATM and states the agreement can be terminated at any time
Further to this, Traka has no obligation to use the ATM and states the agreement can be terminated at any time.
In the event Traka utilises the ATM agreement, the company says it is able to set the floor price, with the final issues price being calculated as the greater of the set floor price or a 5.5% discount to the Volume-Weighted Average Price (VWAP) achieved by Dolphin over a period Traka elects.
Traka also reports it has agreed to issue Dolphin with 34 million shares as collateral under the agreement from its existing placement capacity. The company also notes it has the option to buy back and cancel these shares for no consideration at any time.
In addition, the agreement does not place any restrictions on Traka raising capital through other methods.
Traka Resources is an ASX-listed minerals exploration company working to unlock the potential of the Mt Cattlin project. Historical records show Mt Cattlin has produced 23,000 tonnes of Au grading 24.56g/t Au from 18 mines.
Since recommencing exploration activities at the project in 2020, Traka has undertaken a range of testing including aeromagnetics surveys, induced polarisation (IP) surveys, geochemistry drilling, geological mapping, diamond drilling, and reverse circulation (RC) drilling.
The results gathered will not only underpin the completion of a Mineral Resource Estimate (MRE), but also deliver a new geological interpretation that will demonstrate an ‘excellent’ scope to discover ‘large’ gold-copper resources.
Images: Traka Resources Ltd
