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  • Mining company Thomson Resources (TMZ) has announced plans to raise capital through a fully underwritten, non-renounceable rights issue
  • The company hopes to issue roughly 59.4 million new shares, raising a maximum of approximately $890,000 before expenses
  • The entitlement issue is scheduled to close on July 8, 2020, although the timetable is subject to change
  • The company will use the proceeds to fund exploration activities at its Harry Smith Gold Project and Yalgogrin Project in NSW
  • Thomson Resources came out of a trading halt today, and shares last traded for 1.8 cents each

Mining company Thomson Resources (TMZ) has announced plans to raise capital through a fully underwritten, non-renounceable rights issue.

The company will issue shares at 1.5 cents each, on the basis of one share for every two ordinary shares held. At 1.5 cents each, the issue price is a 16.6 per cent discount to the last trading price.

In addition, Thomson Resources will also issue participating shareholders with one option for every three new shares they subscribe for. The options will have an exercise price of three cents each, and expire on November 30, 2022.

The company hopes to issue a maximum of 59,407,094 new shares. This would result in a maximum capital raise of approximately $890,000.

Only company shareholders with a registered address in Australia or New Zealand will be able to participate in the entitlement issue. Thomson Resources decided not to extend the offer to other shareholders, saying that it was “unreasonable.”

The company said its reasons for the decision regarded the number of shareholder outside Australia and New Zealand, the number and value of new shares and options they would be offered, and the costs of complying with legal and regulatory requirements in those jurisdictions.

Thomson Resources currently expects the entitlement issue will close on July 8, 2020. The resulting new shares and options should be issued and settled by July 15, 2020.

However, the proposed timetable for the company’s entitlement issue is subject to change.

Thomson Resources intends to use the proceeds from the offer for general working purposes, and to fund exploration activity. In particular, the money will be put to use on the company’s Harry Smith Gold Project and Yalgogrin Project in New South Wales.

Funds will help enable airborne geophysical surveys, surface sampling, geophysics reviews, and drilling programs at the Harry Smith Gold Project. The company will also be able to complete surface sampling and a drilling program at the Yalgogrin Project.

Thomson Resources came out of a trading halt today, and shares last traded for 1.8 cents each.

TMZ by the numbers
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