True North Copper (ASX:TNC) has received firm commitments for an $18 million placement and a $2 million share purchase plan (SPP) to fund its final Mt Oxide payment and accelerate copper growth.
The placement comprises 48.6 million shares at $0.37 per share, representing a 14.0% discount to the last closing price. Major shareholder Tembo Capital cornerstoned the raising alongside new institutional investors.
Managing Director Andrew Mooney says the company is ‘pleased’ with the ‘strong;’ support it received for the placement, also welcoming new investors to the register.
“This funding represents an important next step for TNC, providing for the final deferred payment associated with our acquisition of Mt Oxide while funding the next phase of growth across our copper portfolio,” Mooney says.
Proceeds will cover the final $7.5 million deferred consideration payment to Perilya to complete the acquisition of the Mt Oxide Project. Additional funds will also support continued drilling and technical work at Aquila through to 2027 to define the scale and continuity of the system.
Under the terms of the placement, tranche one involves issuing 33.1 million shares to raise $12.2 million under existing placement capacity, with settlement expected on 21 August and share issuance around 24 August.
Tranche two involves the issuance of 15.6 million shares to raise $5.8 million subject to shareholder approval at an October meeting. This includes a $2 million commitment from Tembo Capital and $500,000 from Non-Executive Chairman Paul Cronin.
Morgans Corporate and Petra Capital acted as joint lead managers and joint bookrunners for the placement.
Meanwhile, the SPP allows eligible shareholders in Australia and New Zealand to acquire up to $30,000 worth of shares at $0.37 each without brokerage costs. Capped at $2 million, it is expected to open on 25 August and close on 10 September.
Located in northwest Queensland, the Mt Oxide Project contains a 220,000-kilotonne (kt) copper resource alongside 5 million ounces of silver and 21,000 tonnes of cobalt. Located within this project, the Aquila discovery spans a 1.8km strike length with intercepts including 59m @ 1.77% copper (Cu) and 7m @ 7.90% Cu.
Meanwhile, the Cloncurry Copper Project holds a 129,000kt copper resource and 152,000-ounce gold resource following an updated resource estimate for its Wynberg Project.
The company says further assay results from Mt Oxide will be released over coming months, with the Cloncurry Prefeasibility Study targeted for late Q4 2026.
True North Copper is a mineral explorer focused on copper, silver, gold, and cobalt in Queensland’s Mt Isa region.
Write to Paula Fabe at Mining.com.au
Images: Mining.com.au
