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Tietto Minerals (ASX:TIE) eyes fresh capital

The Market Online Deal Room
ASX:TIE      MCAP $769.8M
18 November 2021 13:59 (AEST)

Drilling at the Abujar gold project. Source: Tietto Minerals

Tietto Minerals (TIE) has entered a trading halt pending an announcement regarding an upcoming capital raising.

The company will remain in the halt until November 22 or when more details are released, whichever occurs first.

Tietto is yet to disclose how much it intends to raise or what it will use the funds for once received.

On November 16, Tietto said it was in talks to secure up to US$140 million (A$192.77 million) in debt financing for its Abujar Gold Project in West Africa.

Tietto has mandated the funding from Taurus Mining Finance Fund, which has agreed to underwrite a five-year development facility.

Loan repayments are expected to begin mid-2023 and no mandatory hedging is required from Tietto.

In its September quarterly, Tietto revealed it had burnt through nearly $8.2 million with the majority going towards administration and corporate costs.

The company also invested $4.2 million in its property, plant and equipment.

As of September 30, Tietto had $32.8 million in total available funding, representing four quarters of use if spending levels remain the same.

Shares in Tietto last traded at 44.5 cents on November 17. The company has a $206.4 million market cap.

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