Twenty Seven Co Ltd (ASX: TSC) has received firm commitments to raise $2.6 million by way of a two-tranche placement to fast-track gold exploration in Western Australia.
Funds raised will primarily be used to progress exploration on the company’s enlarged portfolio of tenements, with a particular focus on the new Mt Dimer acquisition, alongside continuing work at the Rover Project.
As a result of quicker than expected progress in due diligence and success in raising the capital, the company has exercised the option to acquire Oz Gold Group Pty Ltd under the binding term sheet (BTS).
This acquisition includes the Mt Dimer and Yarbu projects, which are both highly prospective for gold.
Option agreement exercised
Last month, the company entered into the BTS under which TSC had a 60-day period to exercise the option.
Oz Gold is a minerals explorer that has rights over gold-copper projects in WA and NSW, that are in well-established mining districts and close to critical supportive infrastructure.
The advanced Mt Dimer Gold Project is around 200 kilometres north of Southern Cross in WA’s Goldfields.
Also acquired under the option is the Yarbu project where an initial in-house review of the previous exploration highlighted several gold anomalies for follow-up exploration.
Under the BTS, the company will issue 100 million fully paid ordinary shares to the Oz Gold vendors.
The company is undertaking reverse circulation (RC ) drilling at its Rover Gold Project with a focus on four main target areas including:
- Harmonic – where the prospective target area has been tripled to around 650 metres by the discovery of a 1.77 g/t gold rock chip;
- Creasy 1 – where previous drilling intersected 15 metres at 3.8 g/t gold from 49 metres including 1-metre at 54 g/t;
- Red Bush – a very strong 600-metre-long gold in soil anomaly, supported by rock chips up to 0.6 g/t and an intersection of 1-metre at 0.97 g/t gold, 13.4 g/t silver and anomalous lead 0.1%, zinc 0.27% and arsenic 0.12 % from 126 metres; and
- Maynard Intrusion – gold in soil anomaly coincident with a favourable trap site, interpreted as a zone of potential high fluid flow at the southern end of the intrusion.
The two-tranche placement involves the issue of 433.33 million ordinary shares at 0.6 cents per share.
Tranche-1 will involve the issue of 121.58 million shares to raise $729,481.28 and will be under the company’s available capacity while 48.63 million shares will be issued using additional capacity.
In Tranche-2, the company will issue 311.753 million ordinary shares to raise $1.87 million and is conditional upon approval of shareholders, to be sought at the company’s Annual General Meeting expected to be held on or around November 25, 2020.
Placement shares are issued at a 24% discount to the 15-day volume-weighted average price (VWAP) and a 14.3% discount to the closing price of 0.7 cents per share on October 1, 2020.