Titan Minerals Limited (ASX: TTM) is preparing to step-up activity at a range of projects in South America after a successful $3.5 million capital raising, with support from merger target Core Gold Inc.
The company said it received firm commitments to raise gross proceeds of $3.5 million through the new share placement that has been strongly supported by domestic and offshore sophisticated and institutional investors.
Canaccord Genuity (Australia) Limited acted as underwriter and lead manager to the Placement, which is expected to occur on or about January16, 2020:
Titan’s Managing Director, Laurence Marsland said the company intends to make a proportion of the funds raised under the Placement available to Core to be utilised towards the exploration and development of the Dynasty Goldfield Project, the Southern Ecuador exploration programmes, the Southern Peru regional exploration and development activities, the Zaruma mine study, maintenance and development activities and the Portovelo plant maintenance.
The remaining funds raised under the Placement will be utilised for ongoing general working capital requirements.
We are pleased with the strong support for this capital raising, the company has had a great response to the public offer in respect to Core with a large range of sophisticated and generalist funds participating in the placement, with continued support from our existing shareholders as well,” Mr Marsland said.
In September 2019, Titan announced its intention to make a public offer to the shareholders of Core Gold Inc. to acquire all of the outstanding shares in Core Gold.
Canada-based Core Gold is a gold mining company with all operations in southern Ecuador.
Titan reported that certain Core shareholders have entered into lock-up agreements, pursuant to which they have committed to deposit all of the Core shares owned or controlled by them under the Public Offer and, in their capacity as Core shareholders, to otherwise support the Public Offer.
Such shareholders own or control, directly or indirectly, approximately 51.7% of the outstanding Core shares excluding any Core shares beneficially owned, or over which control or direction is exercised, by Titan (or any person acting jointly or in concert with Titan), and approximately 48.9% of the total outstanding Core shares.
The number of Core shares currently subject to the lock-up agreements would be sufficient to allow Titan to meet the 50.1% minimum tender condition upon the expiry time of the Public Offer.
Titan is continuously evaluating projects within Peru for acquisition or joint venture to both provide additional, low cost gold and silver mineralized material feed for existing processing facilities and opportunities for processing growth and expansion. In addition, Titan shall also continue to evaluate projects elsewhere in gold, copper and other commodities to grow shareholder value.