Tesoro Gold raises $40M for Chilean project
Key points
- Tesoro Gold has secured $40 million in firm commitments via a two-tranche placement.
- The new shares were priced at $0.73 per share to institutional and professional investors.
- Proceeds will accelerate mine development and fund the acquisition of a remaining 5% stake in its Chilean unit.
Tesoro Gold (ASX:TSO) has secured firm commitments to raise approximately $40 million through a two-tranche placement to accelerate resource expansion and development at its El Zorro Gold Project in Chile.
The capital raise involves the issue of roughly 54.8 million new fully paid ordinary shares at a price of $0.73 per share to domestic and global institutional investors.
“The strong support received from both existing and new high-quality institutional investors is a significant endorsement of El Zorro and the opportunity we see to develop a substantial gold operation in Chile,” said Tesoro Gold Managing Director Zeff Reeves.
Alongside project development, the funds will support the acquisition of the remaining 5% interest in Tesoro Mining Chile SpA, raising total ownership to 95.4%.
The company stated that the capital injection ensures its definitive feasibility study remains on track for delivery by the end of the year.
Following the announcement, the Tesoro Gold share price was unchanged at $0.76.
The company stated that the broader plan includes expanding the Ternera resource and advancing discovery drilling across the entire project district.
