- Gold exploration company Tesoro Gold (TSO) receives firm commitments to raise $5.4 million under a share placement
- More than 89.9 million shares will be issued to domestic and institutional investors at a price of six cents
- Participants will also receive one attaching option for every two shares issued, exercisable at 11 cents within three years from the date of issue
- Tesoro will use the money from the placement to explore and expand the gold resources and development of the El Zorro gold project in Chile
- Shares in Tesoro end the day down 12.3 per cent at 5.7 cents
Gold exploration company Tesoro Gold (TSO) has received firm commitments to raise $5.4 million under a share placement.
A total of 89,985,003 shares will be issued to domestic and institutional investors at a price of 6 cents.
This price represents a 7.7 per cent discount to Tesoro’s closing price of 6.5 cents on June 10 and a 19.4 per cent discount to the 15-day volume-weighted average price.
Participants will also receive one attaching option for every two shares issued, exercisable at 11 cents with expiry three years from the date of issue.
Shaw and Partners will act as Lead Manager and will receive one attaching option for every five placement shares issued.
Tesoro will use the money from the placement to explore and expand the gold resources and development of the El Zorro gold project in Chile.
The money will also be used for general working capital and to repay an unsecured director’s loan of $200,000 plus an 8 per cent lenders fee.
Shares are expected to settle on June 17 and be allocated on June 20.
“The strong demand for the placement and the quality of the institutions which have subscribed reflects the exploration success achieved by the company at El Zorro and the outlook for further growth,” Managing Director Zeff Reeves said.
“The recently updated mineral resource estimate of 1.1 million ounces of gold demonstrates the high quality of the Ternera gold deposit and this raising will support the continued growth of the resource base at Ternera as well as test some of the exciting targets being delineated at El Zorro.”
Shares in Tesoro were down 12.3 per cent and trading at 5.7 cents at market close.