Tesoro Gold Secures A$34M to Propel El Zorro Towards Mining Decision
Tesoro Gold has raised A$34 million through a strategic placement to fund critical development stages of its El Zorro Gold Project in Chile, aiming for a final investment decision.
- A$34 million placement at A$0.053 per share secured from institutional investors
- Funds to support pre-feasibility and definitive feasibility studies
- Exploration activities to intensify with doubling of drilling rigs
- Second tranche of placement subject to shareholder approval in November
- Focus on permitting, development approvals, and resource growth at Ternera
Funding Boost for El Zorro
Tesoro Gold Limited has successfully secured approximately A$34 million through a placement priced at A$0.053 per share, signaling strong institutional confidence in the company’s flagship El Zorro Gold Project located in Chile’s Coastal Cordillera region. This capital injection is earmarked to accelerate the project’s progression through critical development milestones, including pre-feasibility and definitive feasibility studies, as well as permitting and approvals.
Strategic Use of Capital
The proceeds will primarily fund the advancement of El Zorro towards a final investment decision, a pivotal step that could unlock significant value for shareholders. Alongside feasibility studies, Tesoro plans to intensify exploration efforts, particularly around the Ternera discovery, which currently holds over 1.8 million ounces of gold resources. The company intends to double its drilling rigs in the coming months, underscoring its commitment to unlocking the broader district’s potential.
Placement Structure and Market Reception
The placement is structured in two tranches, the first tranche, raising approximately A$26.7 million, will be completed under existing placement capacities, while the second tranche, worth about A$7.3 million, awaits shareholder approval at an Extraordinary General Meeting scheduled for November 2025. The placement price reflects a modest discount to recent trading prices, a common practice to attract sophisticated investors. The strong demand from both domestic and international institutions highlights renewed market interest in Tesoro’s growth strategy.
Project and Regional Context
El Zorro is notable as the first Intrusive Related Gold System discovered in Chile, a country renowned for its world-class mining infrastructure and skilled workforce. Tesoro’s 95% owned subsidiary controls the project, which benefits from established regional infrastructure and significant exploration upside given the largely unexplored nature of the Coastal Cordillera. The company’s approach combines advancing feasibility with aggressive exploration, aiming to expand resources and define new drill targets within the district.
Looking Ahead
With funding secured, Tesoro is positioned to move decisively towards a development decision at El Zorro. The upcoming months will be critical as the company delivers on its feasibility studies and exploration programs, while navigating shareholder approval processes. The market will be watching closely for updates on resource growth, permitting progress, and the eventual investment decision that could transform El Zorro from a promising project into a producing asset.
Bottom Line?
Tesoro’s capital raise sets the stage for a decisive push towards mining at El Zorro, but shareholder approval and exploration results will be key to watch.
Questions in the middle?
- Will shareholder approval for the second tranche be secured without delay?
- How will the intensified drilling program impact resource estimates and project valuation?
- What are the timelines and risks associated with permitting and development approvals?
