- West African gold explorer and developer Tietto Minerals (TIE) receives binding commitments to undertake an $85 million placement
- The placement will be undertaken in two phases with approximately 218 million new fully-paid ordinary shares on offer, priced at 39 cents
- Additionally, four board members have agreed to sell six million Tietto shares at the same price as the placement of 39 cents
- Tietto will use the money to build its Abujar Gold Project in West Africa and continue exploration for gold resource growth
- Tietto ends the day 3.37 per cent in the red with shares trading at 43 cents
West African gold explorer and developer Tietto Minerals (TIE) has received binding commitments to undertake an $85 million placement.
The company entered a trading halt on November 18 but did not disclose how much it intended to raise or what it would use the funds for.
The placement will be undertaken in two phases, with approximately 218 million new fully-paid ordinary shares on offer, priced at 39 cents.
This price represents a 12.4 per cent discount to Tietto’s close of 44.5 cents on November 19 and a 13.8 per cent discount to the five-day volume-weighted average price.
Shares under the first phase will settle on or around November 26 while, subject to shareholder approval, shares under phase two will settle on or around January 14.
Additionally, board members Caigen Wang, Paul Kitto, Francis Harper and Mark Strike have agreed to sell six million Tietto shares at the same price as the placement of 39 cents.
Tietto will use the money, alongside $32.8 million in existing cash, to build its Abujar Gold Project in West Africa and continue exploration for gold resource growth.
Managing Director Caigen Wang commented on the placement.
“With support for this $85 million placement, we now have funding in place to allow us to build Abujar and transform Tietto into West Africa’s next gold producer as bring the project into production on schedule in CY2022,” Dr Wang said.
“We have commenced a US$8.65 million (A$11.92 million) early works program including front end engineering and design, site and camp construction and we have assembled an experienced project build team that can ensure we deliver gold production at Abujar on schedule and on budget.”
Tietto has ended the day 3.37 per cent in the red, with shares trading at 43 cents in a $206.4 million market cap.