Petra Capital has helped it raise A$20 million at 38c per CHESS depository interest, a 15% discount to recent levels.

 

The cash injection, which tops up its $25 million cash on hand, is for the optimisation and expansion of the operations it shares at Norseman with 50% partner Pantoro, and for further examining the potential of its tenements to host lithium and iron ore.

 

It owns 100% of the iron ore rights at Norseman, and has entered a joint venture over the lithium with Mineral Resources.

 

Executive director Mark Maloney said the funding came from a mix of new and existing investors.

 

A shareholder meeting to approve a second $4.7 million tranche is scheduled for mid-December.

 

Production started in the new mill at Norseman during September, some 200km south of Kalgoorlie, with the first gold pour on October 13.

 

The pair hopes to get the mill operating at nameplate throughput before the end of the year.

 

Ore is sourced from the Green Lantern and Scotia open pits, with work ongoing to re-establish production from the OK underground.

 

The tenements cover 800sq.km and contain some 70 kilometres of strike, from which 5.5 million ounces has been recovered since the 1930s. 

 

Remaining gold resources are estimated at 4.8Moz, with reserves of 973,000oz. 

 

Tulla has debts of $37 million.

 

Shares in the new miner were steady this morning at 45c, valuing it at $121 million.

 

The stock has traded at 43-68c over the past year.