By: Creamer media

The company received binding commitments from professional and sophisticated investors in a placement managed by Bell Potter Securities and CLSA Australia.

The debt component comprises a A$15.2-million loan facility with private investors, with terms similar to an existing $35-million loan that Theta has in place with South Africa’s Industrial Development Corporation.

The equity component of $36.3-million comprises a $12-million placement to professional and sophisticated investors at an issue price of A$0.21 apiece, as well as $22.8-million from private cornerstone investors – Cong Yu Company and Moonx Intelligence – at an issue price of A$0.155 apiece in two tranches.

Theta has also received a binding commitment from NC New Energy, which is an associate of nonexecutive director Brett Tang, which totals A$1.5-million, or A$0.155 apiece, and is subject to shareholder approval.

Additionally, Theta plans to allow retail shareholders to participate through a share purchase plan to offer eligible shareholders to raise up to A$2-million if fully subscribed.

The placement and share purchase plan will also involve attaching options for every 2.38 shares subscribed for.

The fundraising, which is expected to be completed by the end of November, will allow the company to conduct infrastructure works such as roads, earthworks and civil construction for a new TGME processing plant, a tailings storage facility and water management infrastructure.

Overall, the funds will strengthen the company’s balance sheet and provide momentum to progress project activities and general working capital.

Theta owns 100% of Theta Gold South Africa, which, in turn owns 74% of the TGME and Sabie Mines operations, in South Africa. TGME is located in Mpumalanga, next to the historical gold mining town of Pilgrim’s Rest.

Theta executive director Richie Yang says the funding package and equity raising is a major vote of confidence from the investment community in the backing of the group’s flagship TGME gold project, particularly in a high-gold price environment.