Funds raised from the issue of up to 46.67 million fully paid ordinary shares at 15 cents per share will help Tietto aggressively advance the Abujar Gold Project in Cote d’lvoire.
The funds will support an ongoing 30,000 metre diamond and reverse circulation (RC) drilling program aimed at growing the existing 1.7-million-ounce resource base as well as additional metallurgical test work.
Tietto is a targeting a mineral resource estimate update for the fourth quarter of 2019.
Placement funds will also be allocated to a 25,000-metre auger and aircore drilling program on regional targets as well as for working capital.
Tietto managing director Caigen Wang said: “The success of the placement is an excellent outcome for the company and the strong level of support from institutional, sophisticated and professional investors is a testament to the high quality of the Abujar Gold Project and the success we have had to date.
“2019 is shaping up to be a very significant year for the project – we have already delivered a 146% increase to the Abujar gold resource to 1.7 million ounces and have recently hit broad high-grade intercepts from shallow depth between lines 26 and 30.
“We have both our diamond rigs intensively drilling this zone with high impact extensional and step-back holes and the funds raised ensure we are well capitalised to rapidly advance the project throughout the year as we target another resource upgrade by year end.”
As part of the placement the company has agreed to issue its major shareholder, Hong Kong Ausino Investment Ltd, up to $2 million of shares in stages.
It is anticipated that Ausino will pay for some of Tietto’s operating costs and be reimbursed through the issue of the placement shares for up to the value of $2 million, similar to the previous commercial relationship Tietto has had with Ausino.