Tietto Minerals Limited (ASX: TIE) is focused on speeding up the progress in its gold exploration targets in West Africa.
The company today, on 18th April 2019, announced that it has received firm commitments to raise up to $7 million (excluding costs) through the issue of up to 46.67 million fully paid ordinary shares at an issue price of 15 cents per share. The placement was well supported by several institutional, sophisticated and professional investors.
The company will utilise the funds raised from the placement in several activities, including advancing the Abujar Gold Project in CÃ´te d'Ivoire, along with an ongoing 30,000 metres diamond and reverse circulation drilling program to grow the existing 1.7 Moz resource base, additional metallurgical test-work, a further mineral resource estimate update targeted for fourth quarter of 2019, and a 25,000 metres auger and aircore drilling program on regional targets and for working capital purposes.
Hartleys Limited and Blackwood Capital Pty Ltd acted as Joint Lead Managers to the placement.
The Managing Director of the company, Dr. Caigen Wang, has attributed the success of the placement to the strong level of support from institutional, sophisticated and professional investors and mentioned that, it as an excellent outcome for the company and a proof of high quality of the Abujar Gold Project, along with the success the company has achieved till date and 2019 is shaping up to be a very significant year for the project.
The company has successfully delivered a 146% increase to the Abujar gold resource to 1.7 Moz and has recently hit broad high?grade intercepts from a shallow depth between lines 26 and 30. Both diamond rigs of the company are intensively drilling the zone with high impact extensional and step?back holes. The funds raised from the placement is ensuring that the company is well capitalised to rapidly advance the project throughout the year, as it targets another resource upgrade by the end of the year.
As a part of the placement program, the company has agreed to issue its major shareholder, Hong Kong Ausino Investment Ltd, up to $2 million of shares (at 15 cents per share) in stages, at Tiettoâs election. It is likely that Ausino will pay for some of the operating costs of the company and will be reimbursed through the issue of the placement shares for up to the value of $2 million, parallel to the previous commercial relationship Tietto has had with Ausino. The company will issue a total of up to 42,902,712 shares at an issue price of 15 cents per share to raise up to $6.435 million (before costs) without shareholder approval under its Listing Rules with settlement expected to occur on Tuesday, 30 April 2019.
As highlighted in the Investor Presentation, there are several catalysts for 2019, with strong news flow expected throughout the year, including extensional drilling beneath undrilled largescale artisanal workings, drilling high-grade AG shoots at depth, drilling to connect AG and APG deposits over 11km of strike and a second resource upgrade by the end of the year.
On the price-performance front, the stock of Tietto Minerals Limited is trading at $0.160, down 13.514% during the dayâs trade with a market capitalisation of ~$42.41 million (on 18th April 2019, AEST 03:26 PM). The stock has generated a significant YTD return of 184.62% and returns of 164.29% and 48.0% over the past six months and one-month period, respectively. Its 52-week high price stands at $0.220, and 52-week low price stands at $0.055, with an average trading volume of 282,067.
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