Theta Gold Mines, listed on the ASX, has secured firm commitments from investors to raise an additional A$4 million in equity funding. This funding will support the advancement of its TGME gold plant in South Africa.
This latest funding comes on top of the two-tranche, $10 million placement announced last month. In June, Theta will issue an additional 46.28 million new shares at A$0.13 per share, along with 23.14 million new attaching options.
The proceeds from this placement will be used to complete detailed engineering for the TGME gold plant, and construction tenders, and finalize previously announced engineering, procurement, and construction contracts. Additionally, funds will go towards the construction of the tailings storage facility, completing detailed debt funding packages, and covering existing financing costs.
Chairperson Bill Guy expressed satisfaction with the ongoing support from long-term investors. “It’s pleasing to receive the continued support from our existing long-term investors in the company as we advance our gold asset to the development stage,” Guy said.
Theta’s TGME project is situated near the historic mining town of Pilgrim’s Rest in Mpumalanga. After small-scale production from 2011 to 2015, the company is now focusing on constructing and financing a new gold processing plant within the approved footprint at the TGME plant.
Two years ago, the company released a feasibility study for the first four mines: Beta, CDM, Frankfort, and Rietfontein. The base case includes a 12.9-year mining operation starting in 2023, projected to deliver 1.24 million ounces of contained gold. The estimated development capital or peak funding requirement is $77 million.
Theta Gold Mines’ additional A$4 million in funding will be pivotal in advancing the TGME gold plant. With robust investor support, the company is well-positioned to progress its gold asset development in South Africa.
Source: Mining Weekly
