Tombola Gold has released 132.7 million new fully paid ordinary shares at an issue price of 2.6 cents per share to qualified institutional and sophisticated investors, and already received about $3.45 million in applications.
In order to present shareholders who did not take part in the offer with an opportunity to invest at the placement issue price, the company will also make offers under a share purchase plan for them to acquire up to $30,000 worth of new shares.
Tombola is a new Australian gold producer, with mining underway and expansion in progress as the company fast tracks to first cash flow, with scoping studies indicating potential for profitable operation.
Tombola’s Mt Freda Complex in Queensland consists of several gold mines including the Mt Freda gold project and Golden Mile project, which are in close proximity to core infrastructure in the area including roads, power and on-site facilities.
in August, Tombola entered into a binding term sheet for the re-commissioning and short-term rental of True North Copper’s Great Australian gold production plant located in the Cloncurry region.
The proceeds of the capital raise will be used by Tombola to fund:
accelerated mining and processing for the Great Australian plant
the cash components as required for the Lorena and True North tenement acquisitions at Mt Freda
the recommissioning of the plant and Lorena gold processing facilities
overheads and working capital.
The company has a well-defined expansion strategy of utilising near-term gold cashflows to drive resource expansion with life-of-mine extensions and exploration focus.
Tombola also holds the Burra project in South Australia, a strategic tenement holding in a geologically prospective area of about 6500 square kilometres including the G2 Structural Corridor, host to Olympic Dam, Carrapeteena, Prominent Hill, with multiple historic high-grade copper and gold workings.