Theta Gold Mines (TGM) has announced plans to raise $10m (A$15.11m) through a private placement from Hong Kong Ruihua Investment Management, a long-term institutional investor holding 6.49% of TGM's issued capital.
The funds will be provided in two tranches, with the intention to issue approximately 116.93 million new fully paid TGM ordinary shares at A$0.133 per share.
The placement also includes around 58.47 million new attaching options, offered on a basis of one free option for every two new TGM shares issued.
Each option will have an exercise price at an 8% discount to the 15-day volume-weighted average price to the last closing price at the time of exercise, with a minimum of $0.13, expiring two years from the date of issue.
Tranche 1 of the placement is set to provide TGM with up to $6m, resulting in the issue of approximately 70.16 million new shares and 35.08 million attaching options.
This tranche is expected to be completed by 31 May 2024, contingent upon Ruihua's parent company in China obtaining the necessary overseas direct investment approval.
Following Tranche 1, Tranche 2 aims to provide an additional $4m within three months, under the same terms and subscription price.
This will involve issuing approximately 46.77 million new shares and 23.39 million new attaching options, subject to shareholder approval at a general meeting.
The new TGM shares issued under this placement will rank equally with the existing fully paid ordinary shares of the company.
The exact number of shares and options will depend on the conversion rate at the time the funds are received under both tranches.
The funds raised will be used by TGM to complete funding packages for the TGME Gold Plant construction as well as for the development works for the plant and tailings storage facility, and water management for TGME gold project.
It will also be used to bolster TGM’s balance sheet and provide momentum to progress advancement of project activities, as well as for engineering, procurement and construction contracts including legals and compliance to capital expenditure.
TGM plans to use the proceeds for bond and loan interest repayments and for general working capital.
