PERTH (miningweekly.com) – Gold explorer Tietto Minerals on Tuesday announced plans to raise A$130-million through a two-tranche share placement to fund the construction of its Abujar gold project, in Côte d’Ivoire.

The company has received binding commitments for the placement of 260-million fully paid ordinary shares at a price of 50c each, with the placement price representing a 14.5% discount to Tietto’s last closing price.

Some 96.9-million of the shares under offer will be issued under Tietto’s existing placement capacity, with the remaining shares to be placed subject to shareholder approval.

“To address the board’s desire to continue with the rapid development of Abujar, we sought to align the company with like-minded investors, keen for the company to realise first gold production by Q4 CY22 and produce 260 000 oz of gold in 2023. We are delighted with support for the placement and welcome several highly credentialled investors to our register,” said Tietto MD Dr Caigen Wang.

“Abujar is an exciting and robust gold project expected to deliver life-of-mine revenue of more than $3.2-billion, and has expanding exploration upside and strong potential for resource expansion, with an aggressive drilling programme underway. Tietto is excited to continue our journey to become a gold producer with a highly supportive register.

“We have expended $41-million on Abujar development to end February 2022, with the remaining $155-million estimated capex to gold production, firm or tendered. Tietto has an experienced team on board to deliver the project on time and on budget and we look forward to achieving first gold later this year.”

A prefeasibility study into the Abujar gold project has forecast that an openpit operation could produce 200 000 oz of gold in the first year of production.

Tietto Minerals previously told shareholders that the project would produce more than 168 000 oz/y of gold over the first six years of the project, based on a maiden openpit ore reserve of 15.7-million tonnes, grading 1.7 g/t gold for 860 000 oz of contained gold.