True North Copper (ASX:TNC) has completed an entitlement offer and placement, raising $16.6 million for mining operations at its Cloncurry Copper Project in Queensland.
The $44.73 million market capitalisation company raised $9 million via the institutional component of the entitlement offer, while also raising a further $7.6 million via the placement.
Settlement of the new shares is expected to occur on 30 May 2024, with the new shares expected to be issued and begin trading on 31 May 2024.
Executive Chairman Ian McAleese says the proceeds provide the company with strong liquidity to begin mining at Cloncurry, starting at the Wallace North deposit.
“TNC’s immediate focus is to be Australia’s next copper producer and we look forward to updating shareholders over the coming weeks,” he says.
True North’s largest shareholder, Tembo Capital, committed to participate up to $6 million through the offer and priority sub-underwriting of the retail entitlement offer.
Further, True North is conducting the retail component of the entitlement offer, aiming to raise another $7.7 million. The retail component will open on 31 May and close on 12 June 2024.
The retail offer will include a top-up facility under which eligible shareholders who take up their entitlement in full may also apply for additional new shares in the offset that were not taken by other eligible shareholders.
True North notes there is no guarantee that applicants for additional new shares, in addition to existing entitlements, will receive all or any of the additional new shares applied for.
New shares under the offer are expected to be issued on 19 June.
Canaccord Genuity and Morgans Corporate acted as underwriters and joint lead managers to the equity raising.
The Cloncurry Project lies in north-west Queensland and is considered prospective for copper, cobalt, and gold. The project has a resource containing 79,400 tonnes of copper, 47,720 ounces of gold, and 1,860 tonnes of cobalt.
Write to Aaliyah Rogan at Mining.com.au
Images: True North Copper
