The investors will subscribe for 53.3 million share at 15c to help Theta purchase equipment for its namesake open‐cut gold project, contribute to environmental-related work including environmental bond obligations for recently granted mining leases, and some pre‐development activities.

 

The shares will be issued in three tranches over three months, and subject to voluntary escrow until December 31, 2020.

 

In tandem with pre-development works, Theta is looking to finance the construction and refurbishment of the existing processing plant.

 

The company released the results of a feasibility study on the Theta open cut gold project in May, showing the viability of the project.

 

The open cut is a "starter project" that aims to generate cash for the company, which would then be  used to revitalise the historical gold mining region around Pilgrim's Rest, where it has defined some 6.8Moz at Columbia Hill and Theta Hill, with around 870,000oz associated with the Theta pit.

 

May's feasibility showed all-in sustaining costs of just US$764 million, marking the mine as potentially one of South Africa's lowest cost gold producers.

 

Theta is ultimately looking to develop production of over 100,000ozpa, but stage one aims to recover 201,000ozpa over five years, generating free cash flows estimated at $65.7 million.

 

Theta shares were steady at 16c this morning, just shy of its recent 52-week peak of 18c, valuing the company at $53.4 million.