Tempus Resources Ltd (ASX:TMR) has raised A$4 million in a placement that has been well supported by sophisticated and institutional investors, including Sprott Asset Management LP and an Asia-based natural resources investment fund.
The bookbuild will raise these funds in two tranches with the issue of more than 26.16 million shares at an average issue price of A15.3 cents per share
The A$1.006 million proceeds from the tranche-1 placement will be applied to the company’s exploration projects in Ecuador and for general working capital.
Funds of approximately A$3 million from the larger tranche-2 component will fund exploration at the Blackdome-Elizabeth Gold Project in British Columbia, Canada.
“Well-funded for exciting period”
Managing director Brendan Borg said: “This capital raising ensures Tempus is well-funded for the exciting period ahead, as we commence our physical exploration programs in Canada in the coming weeks.
“We are very pleased to welcome some significant new investors to Tempus as part of this placement, as we continue to build our profile internationally and in Australia.”
Tranche-1 will utilise the company’s available capacity under Listing rules 7.1 and 7.1A while tranche-2 is subject to shareholder approval.
The volume-weighted average issue price of shares to be issued under the placement is 15.3 cents per share, which represents a 4.37% discount to the volume-weighted average share price for the 15 trading days prior to the placement.
A general meeting will be convened as soon as practicable for shareholders to consider approval of the tranche-2 placement.
The shares to be issued under tranche 2 include components being issued under the Canadian flowthrough shares and charity flow-through shares, which provide tax credits to those investors for capital to be used in qualifying mining and exploration activities.
Three tranche-2 sub tranches
Tranche-2 includes three sub tranches of:
- 2,307,700 shares priced at 13 cents per share;
- 5,649,217 shares priced at 13.5 cents per share (the standard Canadian flow-through sub-tranche); and
- 10,473,108 shares priced at 18.5 cents per share (the charity flow-through sub-tranche).
Aesir Capital Pty Ltd and Clarus Securities Inc acted as joint-lead managers to the placement.
