- Aspiring gold producer Tombola Gold (TBA) has entered into a trading halt ahead of a capital raise
- The company hasn’t disclosed how much it aims to raise nor how it will spend the funds
- Tombola recently announced it’s acquiring the Lorena mine and processing facility for a combination of cash and shares as well as various interests in five other projects in QLD
- The company says the acquisition is a “pivotal step” in its future of becoming a meaningful Australian gold producer
- TBA shares last traded at 3.8 cents per share
Tombola Gold (TBA) has entered into a trading halt ahead of a capital raise.
The company hasn’t disclosed how much it aims to raise or where the funds will be spent.
Under the halt, TBA shares will be paused until a release about the raise is announced to the market or Monday, July 25, whichever one comes first.
Tombola is an up and coming Australian gold producer that has projects in Queensland and South Australia.
In June, the company intersected high-grade results from drilling at the Little Duke area within the Golden Mile Complex in Queensland.
The drill results come from the first hole of a five-hole diamond drilling program and returned results of 15 metres at 2.25 g/t gold and 0.71 per cent copper.
Managing Director Byron Miles said, in June, that TBA is “extremely excited” by the initial drill results as they indicate a strongly mineralised copper and gold system with growth potential.
Last week, Tombola announced signing agreements to acquire 100 per cent of the Lorena mine and processing facility in Queensland which is set to position it to commence gold production in the fourth quarter of this year.
Mr Miles said the acquisition is a “pivotal step” in the company’s future of becoming a meaningful Australian gold producer.
The Lorena purchase will cost five million TBA shares at an implied price of 6 cents each and $7 million in cash with $2 million to be paid upfront.
The company also signed a binding term sheet with True North Copper to acquire various interests in five more projects around the Cloncurry region of Queensland.
This, together with the Lorena acquisition and the company’s existing tenements, provides Tombola with a large-scale regional footprint.
TBA shares last traded at 3.8 cents per share on July 21.