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Highlights
- Tietto launches a two-tranche placement offer to raise AU$130 million.
- The raised funds will be used by Tietto to accelerate the Abujar Gold Project.
- The company will issue approximately 260 million shares of its own at AU$0.5 per share.
The shares of the West African gold explorer and developer Tietto Minerals Limited (ASX:TIE) traded 11.966% lower on the ASX today (29 March) at AU$0.515 per share at 1:00 PM AEDT. Approximately 6.5 million shares of Tietto have been traded on the ASX so far today.
The share price of Tietto has gained more than 43% on the ASX over the past 12 months. On the other hand, Tietto’s year-to-date share price gained by 5.10% on the ASX today (29 March) at 11:21 AM AEDT.
Tietto announced today that it has received binding commitments for a two-tranche placement to raise AU$130 million.
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About the two-tranche placement:
Tietto will approximately issue 260 million fully paid ordinary shares at an issue price of AU$0.50 per share under the placement to raise AU$130 million.
The company planned to use the raised funds to accelerate the development of its 3.35Moz Abujar Gold Project in Côte d’Ivoire, which is on track for its first gold in Q4 CY2022.
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Tietto will utilise the raised funds from the placement and its existing cash balances to development of Abujar and continue project exploration for gold resource growth, as well as for working capital.
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More details of the placement:
Image source: © Evgenyd | Megapixl.com
Tietto also informed that its new shares issued under the placement would rank equally with existing ordinary shares from the date of issue. However, the share placement is subjected to shareholder approval at a general meeting, expected to be held on or around 13 May 2022.
Tietto expects the settlement of the first tranche of the placement to take place on or around 4 April 2022, with allotment on or around 5 April 2022. Furthermore, the second tranche of the placement will be subjected to shareholder approval and is expected to settle on or around 20 May 2022, with allotment on or around 23 May 2022. Additionally, this placement also helps Tietto to replace the mandate for a Project Development Facility of up to US$140 million of debt funding for Abujar.
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