TG Metals’ $2.6M Raise Signals Urgency to Unlock Van Gold Value
TG Metals Limited has raised $2.6 million through a placement to accelerate exploration and development at its Van Gold Uden deposit and Gold City prospect in Western Australia.
- Placement raises $2.6 million via 20 million shares at $0.13 each
- Funds to accelerate drilling and resource expansion at Van Gold Uden deposit
- Focus on infill and extensional drilling to grow mineral resource estimate
- Plans to advance gold stockpile treatment for near-term cash flow
- Placement includes options exercisable at $0.20 with three-year expiry
Capital Raise to Accelerate Development
TG Metals Limited has announced a successful placement raising $2.6 million before costs by issuing 20 million new shares at $0.13 each. The placement attracted strong support from institutional and professional investors, underscoring confidence in the company’s gold exploration and development strategy. The funds will be directed primarily towards advancing the Van Gold Uden deposit and the nearby Gold City prospect in Western Australia.
Expanding the Van Gold Uden Resource
The Van Gold Uden deposit currently hosts a JORC-compliant mineral resource estimate of 6.35 million tonnes at 1.1 grams per tonne gold, containing approximately 227,140 ounces. TG Metals plans to accelerate infill and extensional drilling programs aimed at expanding this resource along strike and at depth. This drilling will help refine the resource estimate and support future development plans.
Near-Term Cash Flow from Stockpile Treatment
In addition to exploration, the company intends to progress treatment of gold mineralised stockpiles through nearby mills. This initiative leverages the low-cost nature of the mineralisation, which sits close to surface, and aims to generate near-term cash flow. Such cash flow could provide financial flexibility as the company advances its broader development objectives.
Placement Terms and Shareholder Considerations
The placement shares will rank equally with existing ordinary shares and are expected to settle by August 8, 2025. TG Metals has also agreed to issue options to the lead manager exercisable at $0.20 each with a three-year expiry, subject to shareholder approval. These options provide potential upside for investors if the company’s share price appreciates.
Strategic Positioning in Western Australia
Van Gold Uden is strategically located within the Hyden Greenstone Belt, close to established gold processing plants and other producing mines. TG Metals’ portfolio also includes lithium assets at the Lake Johnston and Burmeister deposits, positioning the company to benefit from multiple commodity markets. The current capital raise is a critical step in unlocking value from these assets.
Bottom Line?
TG Metals’ $2.6 million placement sets the stage for accelerated resource growth and early cash flow generation at Van Gold Uden.
Questions in the middle?
- How quickly will drilling results translate into an updated mineral resource estimate?
- What are the expected timelines and economics for gold stockpile treatment and cash flow generation?
- Will shareholders approve the issuance of options to the lead manager, and how might this affect capital structure?
