Capital raising paves the way for Tempus Resources to progress gold exploration
Tempus Resources Ltd (ASX:TMR) has successfully completed a bookbuild for the issue of approximately 26,169,868 million new shares to raise approximately $4 million at an average issue price of 15.3 cents per share.
The placement was to sophisticated and institutional investors, including Sprott Capital Partners, a prominent investor in the mining industry and an Asia-based specialist natural resources investment fund.
Underlining the importance of the capital raising in terms of exploration funding and raising the group’s overseas profile, 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.”
The placement comprises two tranches, consisting of about 7.7 million shares at a price of 13 cents per share to raise approximately $1 million.
Tranche 2, subject to shareholder approval, consists of 18,430,025 shares at an average price of 16.0c per share, to raise approximately $3,000,000.
The volume-weighted average issue price of shares to be issued under the Placement is 15.3c per share, which represents an 4.37% discount to the volume-weighted average share price for the 15 trading days prior to the Placement.
Proceeds from the Tranche 1 placement will be applied to the company’s exploration projects in Ecuador and for general working capital, whilst the larger Tranche 2 component will be used to fund exploration at the company’s Blackdome-Elizabeth Gold Project in British Columbia.
Tranche 2 includes three sub-tranches of: 2,307,700 shares priced at 13.0c per share, 5,649,217 shares priced at 13.5c per share (the standard Canadian flow-through sub-tranche); and 10,473,108 shares priced at 18.5c per share (the charity flow-through sub-tranche). .
Tempus positioned to progress exploration
By way of background, Tempus has two key projects, one being the the Blackdome-Elizabeth Project which includes a historical Mineral Resource declared under Canadian NI43-101.
Some important historical data on one of the company’s other assets, the Mineral Creek Gold Property located on Vancouver Island British Columbia was released last week.
The presence of bonanza gold grades excited investors as the company’s shares soared 50% from 12.5 cents to 19 cents on the day the information was released.
Most of these gains were retained despite subsequent market volatility, and given the capital raising will assist the group in progressing these projects Tempus should continue to receive strong support.
The company’s primary focus is on the Blackdome-Elizabeth Gold Project.
However, given the outcomes of recent reviews, management plans to allocate further resources to advancing the Mineral Creek Project.
Compilation of a consolidated database is in progress, which will be used to generate mineralisation models to assist in planning of new drilling programs.
Further field assessment and sampling programs at Mineral Creek are being planned as part of the upcoming field season, set to commence in the coming weeks at Blackdome-Elizabeth.
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