Odyssey Gold Limited has successfully raised approximately $9 million through a placement to fund accelerated development at its Tuckanarra Gold Project in Western Australia.
- Placement raised ~$9 million at $0.031 per share
- Additional $0.4 million conditional placement by directors pending shareholder approval
- Funds to accelerate drilling, update Mineral Resource Estimate, and advance Scoping Study
- Cornerstone investor Tribeca Investment Partners committed substantial support
- Tuckanarra Project hosts 407,000 ounces gold at 2.5 g/t grade
Successful Capital Raise
Odyssey Gold Limited (ASX – ODY) has announced a successful placement raising approximately $9 million through the issue of around 279.4 million new shares priced at $0.031 each. This capital raise was strongly supported by both new and existing institutional and sophisticated investors, including cornerstone investor Tribeca Investment Partners. In addition, company directors have committed to a conditional placement of approximately 12.4 million shares, subject to shareholder approval, which would raise a further $0.4 million.
Funding Project Advancement
The proceeds from the placement will be directed towards accelerating resource drilling and completing an updated Mineral Resource Estimate at the Tuckanarra Gold Project, located in Western Australia's Murchison district. The company is also advancing a Scoping Study and commencing pre-development works, aiming to unlock the project's near-term development potential. The Tuckanarra Project currently boasts a Mineral Resource Estimate of 5.14 million tonnes at 2.5 grams per tonne gold, equating to 407,000 ounces of gold.
Strategic Importance of Tuckanarra
Executive Director Matt Syme highlighted that the capital raise provides Odyssey with the capacity to push hard on monetising its valuable resource base. The company plans to leverage its deep understanding of the Tuckanarra geology to explore for additional resources. With permitting advantages in place, Odyssey is optimistic about the potential for near-term development and is investigating various processing options nearby. Ongoing feasibility and technical studies are expected to shed further light on the project's viability.
Market and Shareholder Implications
The placement price of $0.031 per share represents an 11.4% discount to the company's last closing price, reflecting a common practice to incentivise investor participation in capital raises. The conditional placement by directors signals confidence in the project’s prospects, though it remains subject to shareholder approval. The company has scheduled a General Meeting to seek this approval, with notices to be sent shortly.
Looking Ahead
With funds secured, Odyssey is positioned to accelerate its development timeline at Tuckanarra, potentially enhancing shareholder value as the project advances through key technical and regulatory milestones. The market will be watching closely for drilling results, updated resource estimates, and progress on the Scoping Study to gauge the project's trajectory.
Bottom Line?
Odyssey’s fresh capital injection sets the stage for a pivotal phase in unlocking Tuckanarra’s gold potential.
Questions in the middle?
- What timeline does Odyssey anticipate for completing the Scoping Study and feasibility outcomes?
- How might the conditional placement impact share dilution and investor sentiment?
- What are the key risks or hurdles remaining before Tuckanarra can move into production?