West African gold explorer and developer Tietto Minerals has received binding commitments for an underwritten placement to raise US$45.0 million and a further non‐underwritten placement of $12.5 million through the issue of approximately 92.7 million fully paid ordinary shares at $0.62 per share to raise a total of $57.5 million.
In addition, the company will undertake a share purchase plan of up to A$5 million for a total capital raising of up to $62.5 million.
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Hartleys and Canaccord Genuity acted as Joint Lead Managers to the Placement and Underwriters to the underwritten $45.0 million component of the Placement.
The Placement was strongly subscribed by both domestic and international existing and new institutional investors.
Proceeds of the Placement will be used to continue delivering growth in resources through resource and exploration drilling at the Company’s Abujar Gold Project, fully fund both the Pre‐Feasibility Study and Definitive Feasibility Study for Abujar, provide capital for long lead time items associated with the proposed mine development, and for working capital.
Tietto MD, Dr Caigen Wang, says:
“I am proud of what the Tietto team has been able to deliver to date, driving rapid resource growth from a large high‐grade gold deposit, and doing so at an extremely low discovery cost.
“In doing so, Tietto has quickly evolved into an exciting West African gold development story.
“I would like to welcome a number of new institutional shareholders to the share register via this placement and thank our many long‐term shareholders who are further supporting this placement.
“I expect Tietto will continue to deliver a strong flow of activity and newsflow in the weeks and months ahead as we provide regular drilling updates, deliver our Mineral Resource update expected in September 2020, and our Pre‐Feasibility Study in Q1, 2021.
Most significantly, this Placement means Tietto is now fully funded to deliver its Pre‐Feasibility Study and Definitive Feasibility Study next year and have great flexibility to commit to some long lead time items related to mine development.
“This is an enviable position to be in given Tietto only listed on the ASX in 2018.”
The Company has recently commenced its Pre‐Feasibility Study in respect of the 2.2 Moz Abujar Gold Project in Côte d’Ivoire, West Africa.
At present Tietto has five Company‐owned diamond drill rigs operating at the Abujar project site, with four rigs drilling day and night and one rig on stand‐by as a backup.
The funding from the placement will provide for additional mineral resource drilling over the next 12 months of approximately 45,000 metres, as well as exploration drilling of 25,000 metres across multiple targets outside of the existing resources.