Tarrina Resources is set to acquire promising exploration assets in NSW and SA, backed by a $5 million capital raise. The move aims to reposition the company within the mining sector and secure its ASX listing.
- Binding agreement to acquire Rox 1 and Rox 2 exploration projects
- Public offer launched to raise $5 million at $0.02 per share
- Quarterly cash flow negative with $348K cash on hand
- Pre-offer funding of $734K raised via promissory notes and loans
- ASX reinstatement targeted for November 2025 post-acquisition
Strategic Shift Through Acquisition
Tarrina Resources Limited, following its divestment of the My Foodie Box business in 2024, is pivoting back to its mining roots with a significant acquisition in the exploration sector. The company has entered into a binding agreement to acquire Rox 1 Pty Ltd and Rox 2 Pty Ltd, entities holding exploration projects rich in gold, copper, silver, and rare earth elements across New South Wales and South Australia.
Capital Raise to Fuel Growth
To finance this strategic acquisition, Tarrina has lodged a prospectus to raise $5 million through a public offer of 250 million shares priced at two cents each. This capital injection is critical not only for completing the acquisition but also for supporting the company’s operational needs as it transitions back into the mining sector. The company successfully secured shareholder approval for both the acquisition and the capital raise in early October, signaling strong internal support for this new direction.
Financial Position and Funding
During the September quarter, Tarrina raised $734,000 through the issuance of promissory notes and loan collections, bolstering its cash reserves. However, operational cash flow remained negative at $363,000, leaving the company with just under one quarter of funding available without the completion of the acquisition and capital raise. Tarrina’s management is relying on the successful completion of these transactions to stabilize its financial footing and meet its business objectives.
Path to ASX Reinstatement
The company plans to apply for reinstatement to official quotation on the ASX in November 2025, contingent on completing the acquisition and capital raise. This reinstatement is a crucial milestone, as it will restore liquidity and market visibility for Tarrina’s shares, potentially attracting new investors and partners interested in its exploration projects.
Outlook and Market Implications
Tarrina’s move into exploration assets with exposure to multiple valuable minerals aligns with broader market interest in diversified mining projects, especially those involving rare earth elements critical to emerging technologies. The success of the acquisition and capital raise will be pivotal in determining the company’s trajectory and its ability to capitalize on these opportunities.
Bottom Line?
Completion of the Rox acquisition and capital raise will be the defining moment for Tarrina’s return to mining and ASX relisting.
Questions in the middle?
- Will Tarrina meet all conditions to complete the Rox acquisition on schedule?
- How will the company manage its cash flow until the $5 million raise is fully deployed?
- What are the exploration timelines and potential milestones for the Rox projects?