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Theta raises another $4m for South Africa gold project

The TGME project in South Africa

The TGME project in South Africa

26th June 2024

By: Creamer Media Reporter

     

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ASX-listed Theta Gold Mines has received firm commitments from investors to raise a further A$4-million (A$6.02-million) in equity funding to advance its TGME gold plant, in South Africa.

The placement is in addition to the two-tranche, $10-million placement announced last month.

The additional proceeds raised in June will result in Theta issuing a further 46.28-million new shares at A$0.13 a share, along with 23.14-million new attaching options.

The proceeds of the latest placement will also go towards completing detailed engineering for the TGME gold plant, construction tenders, finalising the previously announced planned engineering, procurement and construction contracts for the plant and tailings storage facility construction, as well as completing detailed debt funding packages and paying existing financing costs.

“It’s pleasing to receive the continued support from our existing long-term investors in the company as we advance our gold asset to development stage,” said chairperson Bill Guy.

Theta’s project is located next to the historical mining town of Pilgrim’s Rest, in Mpumalanga.

Following small-scale production from 2011 to 2015, the company is currently focussing on the construction and financing of a new gold processing plant within its approved footprint at the TGME plant.

The company has completed a feasibility study released to the ASX two years ago, for the first four mines - Beta, CDM, Frankfort and Rietfontein. The base case comprises a 12.9-year mining operation starting in 2023 and delivering 1.24-million ounces of contained gold.

The estimated development capital or peak funding requirement is $77-million.

Edited by Creamer Media Reporter

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