- Resource explorer TNG (TNG) has fallen short of raising the full $12.5 million it was seeking from its recent entitlement issue
- The company instead walked away with $8.77 million, representing a 70 per cent take-up by shareholders
- TNG said it may offer up the remaining 37 million shares as part of a shortfall placement in the next three months
- The strategic metals business will use all of the funds raised to advance its Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory
- Shares in TNG are trading for 11 cents each, up 4.76 per cent
TNG (TNG) has fallen short of raising the full $12.5 million from its recently announced capital raise.
The strategic metals business first announced the entitlement issue to shareholders back in early October.
Under the offer, eligible shareholders were offered over 100 million new shares worth 10 cents each, with each share coming with an attaching option.
The options have an exercise price of 18 cents each as well as an expiry date of November 31, 2020.
The offer closed on November 11 and TNG said over 87 million shares were subscribed for by shareholders — representing a 70 per cent take-up.
This means the resource explorer will walk away with $8.77 million from the offer, less than the $12.5 million it had originally been seeking.
However, TNG said it has the right to place the approximately 37 million shares leftover in the shortfall within the next three months.
Commenting on the equity raise, Managing Director and CEO Paul Burton said he was delighted with the level of support recieved.
“On behalf of the board of directors of TNG, I would like to sincerely thank all shareholders who participated in the entitlement issue for their continued support,” Paul said.
The Managing Director and CEO also confimed the money raised would go towards developing its Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory.
“The proceeds from the Entitlement Issue will support completion of pre-development engineering, approvals and planning for our flagship Mount Peake Project, as we complete the FEED process and embark on the next stage of
project funding and final permitting,” Paul added.
Shares in TNG are currently trading for 11 cents each, up 4.76 per cent at 11:42 AM AEDT.