Tolu Minerals Secures A$27.25 Million to Fast-Track Tolukuma Gold Exploration and Infrastructure

April 30, 2025 12:54 PM AEST | By Team Kalkine Media

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Tolu Minerals Secures A$27.25 Million to Fast-Track Tolukuma Gold Exploration and Infrastructure — Image source: Shutterstock

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Highlights

A$27.25 million raised via placement

Funds allocated to exploration and mine development

Key appointment strengthens geology strategy

Tolu Minerals (ASX:TOK) has announced a successful capital raise of A$27.25 million through a placement to institutional and sophisticated investors, marking a pivotal move in its journey to revitalise operations at the Tolukuma Gold Mine in Papua New Guinea.

The placement was priced at A$0.80 per share, representing a 9.6% discount to the company’s last traded price of A$0.885 on April 24, 2025. The issued price also came at a 7.5% discount to the five-day volume weighted average price (VWAP) and 6.2% below the 15-day VWAP. The company has issued approximately 34.1 million new shares as part of this initiative.

Proceeds from the raise will primarily support a comprehensive exploration campaign focused on the high-potential zones around the Tolukuma Gold Mine, building on recent findings from an Airborne Magneto Telluric (AMT) survey. The survey highlighted multiple zones of geological interest, further reinforcing the strategic value of the region.

In addition to exploration, the funds will enable Tolu Minerals to invest in critical infrastructure upgrades. These include modernising the tailings management facility, acquiring advanced mining equipment, and refurbishing the existing carbon-in-leach (CIL) gold processing plant. These efforts are aimed at streamlining operations and enhancing early-stage gravity-related gold recovery, potentially improving overall project economics.

The company also emphasised the strategic appointment of Dr Chris Muller as Head of Geology Exploration & Strategy. With over two decades of exploration success in Papua New Guinea, Dr Muller brings significant regional expertise to guide future discoveries and resource expansion.

The balance of the funds raised will be directed toward general working capital and the completion costs of the placement.

This funding milestone allows Tolu Minerals to fast-track its gold production objectives and further unlock the region's mineral potential. The progress at Tolukuma also adds to the growing investor interest in resource-backed opportunities among ASX dividend stocks, especially within the broader context of the ASX200 landscape.

With strong backing from both local and global institutional investors, the company is well-positioned to execute its strategy and tap into one of Papua New Guinea’s most promising gold corridors.

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