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- Taruga Minerals (TAR) is raising up to $3.5 million through a placement to sophisticated and institutional investors
- The junior minerals explorer will issue up to 125 million shares to new and existing investors at 2.8 cents each
- Company directors have also committed to subscribe for up to $225,000 worth of shares in the placement but this is subject to shareholder approval
- Taruga is using the money to continue on with exploration at the Morgans Creek prospect in South Australia as well as for regional exploration
- Company shares are up 6.9 per cent to trade at 3.1 cents at 12:40 pm AEDT
Taruga Minerals (TAR) has received firm commitments to raise $3.5 million through a placement.
The company will issue up to 125 million shares to sophisticated and institutional investors at 2.8 cents each.
Subject to shareholder approval, company directors will apply for up to $225,000 worth of shares on the same terms as the placement.
CEO Thomas Line said it was “fantastic” to see strong participation from existing sophisticated investors as well as the company’s directors.
“This is a fantastic outcome for the company, and we are now well equipped to continue on our growth trajectory into the foreseeable future, by strategically developing our South Australian rare earth element and copper asset,” he said.
Taruga will use the money to deliver a maiden JORC mineral resource estimate for the Morgans Creek prospect which is part of the Mt Craig project in South Australia.
The company recently reported the highest rare earths grade it has seen to date from Morgans Creek following a rotary air blast drilling program. Drilling returned an intercept of one metre at 9082 parts per million total rare earth oxides from 13 metres.
The results also had a basket average of 34 per cent magnet rare earth oxides, which is higher than the peer average of 25 per cent.
Following that announcement, Taruga said it was eager to recommence drilling at the prospect in early 2023.
In addition, Taruga will also use the placement funds to support regional rare earth element exploration and copper exploration.
Company shares were up 6.9 per cent to trade at 3.1 cents at 12:40 pm AEDT.
