Tietto tops up treasury

DAYS after mandating Taurus Mining Finance to provide the debt component for its 3.35 million ounce Abujar development in Cote d’Ivoire, Tietto Minerals has raised fresh equity to ensure the development is fully funded.
Tietto tops up treasury Tietto tops up treasury Tietto tops up treasury Tietto tops up treasury Tietto tops up treasury

Tietto has commenced an early works program

Haydn Black


Taurus is expected to deliver US$130-140 million in debt for the $200 million mine, leaving a circa $60 million funding gap that Tietto has plugged with a successful A$85 million raising at 39c per share that was backed by Zhaojin Mining, one of China's largest gold mining companies.
It adds to the company's existing cash position of about $33 million, which is substantially earmarked for exploration and resource growth.
Tietto managing director Dr Caigen Wang said the placement, which was offered at a 14% discount, was heavily oversubscribed by Australian and offshore institutional and wholesale investors. 
Petra Capital and Jett Capital Advisors managed the placement, which will see 116 million shares issued over two tranches, with the second planed for January 2022 pending shareholder approval.
As part of the process, Wang and his fellow Tietto directors Paul Kitto, Francis Harper, and Mark Strizek have agreed to sell six million shares into the placement to help fund the exercise of options that are expected to generate about $10 million.
Abujar is expected to produce an average of 200,000ozpa over the first six years of a projected 11-year mine life, generating a post-tax net present value of A$970 million.
First gold is expected before the end of 2022. Payback is expected to take less than one year.
The stock has traded between 28.5c and 48.5c over the past year, and the shares dipped 6% in early trade to 42c, valuing it at $206 million.