Theta raises $1.7m to advance TGME Gold Project in South Africa

Thu 27 Oct 22, 12:05pm (AEST)
An individual retrieves a selection of Australian one hundred dollar notes from a checkered wallet
Source: iStock

Key Points

  • Theta Gold Mines raises $1.7m through private placement
  • Company will also publish information on a share purchase plan for a further $1.5m on November 7
  • Company expects to update on Sprott’s proposed $110m investment in December

Theta Gold Mines (ASX:TGM) raised $1.7m to advance the development of its TGME Gold Project located in South Africa, which earlier this month caught the attention of metals giant Sprott

Theta will issue just over 24.2m new shares at 7 cents each, an -11.4% discount to its last traded price on Monday, 24 October.

The funds will be used to progress and support the following:

  • Preliminary development costs for the TGME Project 

  • Compliance and approvals costs in South Africa 

  • Repayments and general capital 

Share purchase plan also in the works 

Additional to the placement announced today, the company says it “wishes to reward loyal shareholders by conducting a share purchase plan” to raise a further $1.5m at 7 cents per share.

Shareholders will be able to apply for up to $30,000 worth of shares. 

New shareholders welcome: management 

“I welcome the new strategic international and domestic investors to our registry as funds will be used to progress pre-development work,” Theta Gold Mines chairman Bill Guy said. 

“Due diligence is being prepared for Sprott’s team and their various appointed consultants. The board shall provide an update of this progress in December 2022.” 

Earlier this month, Sprott entered a non-legally-binding term sheet worth $110m with Theta which may see the former fund the latter’s South African gold mine to full development. 

Sprott is currently probing through Theta’s books. Should it be satisfied, the $110m it will give cover 90% of the TGME Gold Project's first stage funding requirements. The project is targeting a 160,000 oz per annum within the first five years of production with the potential to mineral resource and incorporate more nearby mines to the plant site.

A look at Theta's six month charts. Are investors overlooking Sprott's interest in the company's flagship play?
A look at Theta's six month charts. Are investors overlooking Sprott's interest in the company's flagship play?
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Theta was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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