True North Copper (TNC) has announced that it has received firm commitments for a $15 million placement, part of which is set to fund the restart of the Great Australia Mine.
The two-tranche placement has seen strong support, with high levels of institutional participation that included leading global investor groups both domestically and offshore.
The commitments received make up the approximately $15 million placement including approximately $4.3 million in debt converted.
TNC will use the proceeds from the placement, together with existing cash, for:
- Restart of the Great Australia Mine, Queensland
- Cloncurry exploration and mine life extension drilling
- Further drilling and survey works at the Vero Resource targeting resource growth
- Conversion of short-term loan from Tembo plus accrued interest to equity
- Partial repayment of short-term working capital facility to Dyda Property Management
- General working capital and the costs of the Placement
The Placement will provide significant balance sheet strength and flexibility to progress activities to support the restart of the Great Australia Mine to increase near-term cash-flows
Additionally, a term sheet was signed with a specialist mine finance group to provide up to US$28 million facility to support growth of the business (subject to due diligence and execution of definitive documentation).
TNC has said that its copper sulphate production has continued to ramp-up in the December quarter and is now cash-flow positive.
Expected additional cash-flows from the Great Australia Mine will support further exploration activities at the highly prospective Vero Resource, part of TNC’s Mt Oxide Project.
Subject to shareholder and FIRB approval, TNC’s major shareholder Tembo Capital Holdings UK has provided a firm commitment for $6.5 million in the placement (including the approximately $4.3 million in debt to be converted).
TNC Managing Director, Marty Costello, and Chairman, Ian McAleese, will also participate in the placement, subject to shareholder approval.
Mr Costello said that this placement represents a substantial de-risking of the Great Australia Mine restart.
“We expect completion of the mining study for the Great Australia Mine and FID by early December 2023. We are laser focused on delivering on our stated objectives and creating value for our shareholders,” Mr Costello said.
“We are incredibly grateful to our existing shareholders for their loyal support and welcome new shareholders to the TNC register. The entire TNC team is working tirelessly to deliver on our strategy and repay the faith shown to us.”