Turaco Gold’s Discounted Share Plan Faces Potential Scale Back Amid Market Uncertainty

Capital Raising Strategy

Turaco Gold Limited (ASX, TCG) has launched a Share Purchase Plan (SPP) designed to give retail shareholders in Australia and New Zealand the opportunity to buy additional shares at a discounted price of $0.44 each. This follows a successful $60 million placement to institutional and professional investors at the same price, announced earlier this month. The SPP aims to raise up to $4 million, allowing eligible shareholders to invest up to $30,000 without brokerage fees.

Discounted Pricing and Participation Details

The issue price under the SPP represents a 9.3% discount to the volume weighted average price of $0.485 over the five trading days prior to the announcement. This pricing strategy is intended to incentivize participation from retail investors while maintaining consistency with the institutional placement. Shareholders registered as of 17 June 2025 with addresses in Australia or New Zealand are eligible to participate, with minimum and maximum investment thresholds set at $2,500 and $30,000 respectively.

Use of Funds and Project Focus

Funds raised through both the placement and the SPP will be directed towards advancing Turaco Gold’s flagship Afema Gold Project. Key activities include ongoing resource drilling to enhance the existing 3.6 million ounce Mineral Resource Estimate, exploration along the extensive Afema Shear zone, and accelerating regional exploration across the 1,600 square kilometre project area. Additionally, the capital will support feasibility studies and general working capital requirements, underpinning the company’s growth ambitions.

Offer Mechanics and Governance

The SPP is non-underwritten and may be subject to scale back at the board’s discretion if applications exceed the $4 million target. The company reserves the right to reject or scale back applications equitably, with final decisions being binding. Shares issued under the plan will rank equally with existing shares and are expected to be allotted within five business days after the offer closes on 11 July 2025. The company emphasizes that share prices may fluctuate between the offer and issue dates, and shareholders are advised to seek independent financial advice.

Implications for Shareholders

This SPP provides an accessible avenue for retail shareholders to participate alongside institutional investors in Turaco Gold’s capital raising efforts. By offering shares at a discount and waiving brokerage fees, the company aims to broaden its shareholder base and strengthen community support. However, the potential for scale back and market price volatility means investors should carefully consider their participation. The success of this raise will be a key indicator of shareholder confidence as Turaco Gold advances its exploration and development programs.