TG Metals Limited has raised $4 million through a strongly supported placement to fast-track drilling and exploration at its Van Uden Gold Project in Western Australia’s Forrestania Greenstone Belt.
- Placement of 18.18 million shares at $0.22 each to raise $4 million
- Funds to accelerate drilling, infill, and exploration at Van Uden and Gold City Prospect
- Company cash position to increase to approximately $6.5 million post-placement
- Strong institutional and sophisticated investor support with oversubscription
- Placement subject to shareholder approval expected in late October
Strong Capital Injection for Van Uden
TG Metals Limited has announced a $4 million placement, issuing over 18 million new shares at 22 cents each. This capital raise, backed robustly by institutional and sophisticated investors, is designed to accelerate exploration and drilling activities at the company’s flagship Van Uden Gold Project, located in the prolific Forrestania Greenstone Belt of Western Australia.
The placement, which is subject to shareholder approval expected by late October, will boost TG Metals’ cash reserves to approximately $6.5 million. This enhanced financial position provides the company with the means to rapidly advance its resource expansion programs and explore new growth opportunities within the region.
Focused Exploration and Resource Growth
Funds raised will be deployed to extend and infill drill the existing Van Uden deposit, aiming to upgrade the current mineral resource estimate. Additionally, TG Metals plans to accelerate exploration along a 6.5-kilometre gold soil anomaly adjacent to the Van shear zone, a target first reported earlier this month. A maiden drilling campaign is also set to commence at the nearby Gold City Prospect, further diversifying the company’s exploration portfolio.
Moreover, the company intends to advance opportunities related to the treatment of historical stockpiles, potentially unlocking additional value from existing resources. The Van Uden Project already hosts a significant gold mineral resource, with recent exploration doubling the mineralised strike length to 6.5 kilometres, highlighting substantial potential for further resource growth both along strike and at depth.
Strategic Location and Market Context
Situated within a well-established gold mining district, Van Uden benefits from proximity to several operating gold processing plants, including Marvel and May Loch. This strategic location reduces infrastructure risk and enhances the project’s attractiveness. TG Metals’ Chairperson, Richard Bevan, emphasised the strong investor confidence reflected in the oversubscribed placement and highlighted the company’s excitement about growth prospects amid record-high gold prices.
With the placement proceeds, TG Metals is well-positioned to accelerate its exploration timeline, potentially delivering resource upgrades and new discoveries that could materially enhance the project’s value proposition.
Bottom Line?
TG Metals’ fresh capital injection sets the stage for a pivotal phase of exploration that could redefine the Van Uden Project’s potential.
Questions in the middle?
- How will upcoming drilling results impact the current mineral resource estimate at Van Uden?
- What are the timelines and expected outcomes for the maiden drilling at Gold City Prospect?
- How might shareholder approval timing affect the deployment of the placement funds?