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- Theta Gold Mines (TGM) enters a trading halt regarding an upcoming capital raise
- The company recently signed a US$70 million (A$110 million at the time) term sheet with Sprott Streaming and Royalty to support the development of its TGME project in South Africa
- It isn’t clear whether the capital raise funds will also be put towards the TGME project but the details will likely be released by October 27
- TGM shares last traded at 7.9 cents on October 24
Theta Gold Mines (TGM) has placed its shares in a trading halt regarding an upcoming capital raise.
This comes soon after the company announced it had signed a US$70 million (A$110 million at the time) term sheet with Sprott Streaming and Royalty on October 19.
Theta Gold Mines said the money from the non-binding term sheet will cover majority of the capital required for the stage one development of its TGME project in South Africa.
Theta’s Executive Chair Bill Guy said the term sheet funding represents a “significant milestone” for the construction of the project.
Mr Guy also said the deal is a more “cashflow-friendly” method of financing rather than straight debt finance.
As for the capital raise, Theta is yet to disclose how much it plans to raise as well as how it will spend the money.
The company expects the trading halt will be lifted by October 27, when it also expects the capital raise details will be released to the market.
TGM shares last traded at 7.9 cents on October 24.
