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  • Tesoro Gold (TSO) launches an $8 million capital raise, with the majority of the funds to go towards its El Zorro gold project in Chile
  • The capital raise includes a strategic investment by Gold Fields subsidiary Corporate International, which is committing to a $4.2 million placement
  • Tesoro will issue investors 120 million shares at 3.5 cents each along with one free-attaching option for every two shares, exercisable at 7 cents within three years
  • Separately, a fully underwritten entitlement offer will raise the other $3.8 million, allowing eligible shareholders to subscribe for one new share for every eight shares held
  • Tesoro shares are up 2.7 per cent to trade at 3.8 cents at 1:14 pm AEDT

Tesoro Gold (TSO) has launched an $8 million capital raise to advance its El Zorro gold project in Chile.

The capital raise comprises a placement of $4.2 million, which will come in the form of a strategic investment by Gold Fields subsidiary Corporate International, and a $3.8 million entitlement offer.

Under the placement, Tesoro will issue 120 million shares at 3.5 cents to Corporate International. The issue price marks a 5.4 per cent discount to the company’s last closing price and a 4.7 per cent discount to its five-day volume-weighted average price up to November 15.

Subject to shareholder approval, the investor will also receive one free-attaching option for every two shares subscribed for. The options will be exercisable at 7 cents within three years from the date of issue.

In addition, the fully-underwritten non-renounceable entitlement offer will allow eligible shareholders to subscribe for one new share for every eight shares held on November 18 at the same issue price as the placement.

Like the placement, the entitlement offer will come with one free-attaching option for every two shares issued and these are exercisable on the same terms as the placement.

The Gold Fields subsidiary will sub-underwrite up to $3.465 million of the entitlement offer.

The offer also includes a shortfall facility under which eligible shareholders who’ve taken
up their full entitlement may apply to take up additional shares in excess of their pro rata entitlement.

Tesoro Managing Director Zeff Reeves said he was “very pleased” to have attracted Gold Fields as a strategic investor in Tesoro and the El Zorro gold project.

“We believe this investment represents tremendous confidence in El Zorro and our team and recognition of the significant potential of the project,” Mr Reeves said.

The funds will be used for drilling multiple gold targets, mining studies and permitting works, and expanding the mineral resource of the Ternera gold deposit.

Tesoro shares were up 2.7 per cent to trade at 3.8 cents at 1:14 pm AEDT.

TSO by the numbers
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